Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
Nous Group
University COO Survey
Building the plane plan while flying it:
the challenges of a contemporary
university COO
28 April 2022
Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
About the survey
                                                            CONTENTS
This report was made possible thanks
to over 70 university COOs from across
Australia, Canada, Ireland, New Zealand,                    ►   Introduction                                                               5
and the UK. We are extremely grateful
for the time and expertise that was so
                                                            ►   The evolving COO                                                           6
willingly provided.
                                                                Administrator to Chief Risk Manager to Strategic Partner
The inaugural Nous Group University
COO Survey ran from December
2021 – January 2022 via an online                           ►   Data-led decisions                                                         10
questionnaire that was sent to Chief
                                                                A new pace and style for COOs
Operating Officers and equivalents
at universities and post-secondary
institutions across Australia, Canada,                      ►   Financial fortunes                                                         12
Ireland, New Zealand, and the UK.
                                                                Establishing long-term sustainability
Survey results were supplemented by
additional in-depth interviews with
COOs throughout the same period, and                        ►   The digital challenge                                                      16
additional commentary and insight from                          The great step change
Nous Group consultants.
As this annual survey evolves, we look
                                                            ►   Tomorrow’s campus, today                                                   18
forward to broadening its reach, and
exploring the insights over time, as they                       The estate challenge
emerge.
A note on terminology                                       ►   Talent attraction                                                          22
Terminology for people, roles and institutions varies           Fierce competition for strategic and digital skills
across the world. For the sake of consistency, we
have referred to the institutions as “universities”,
but this should be read to include other post-
                                                            ►   Market intelligence                                                        24
secondary educational institutions as well as the
faculties within institutions. We have referred                 Proving its worth
to the operations leader as the Chief Operating
Officer, although we are mindful some institutions
use other titles. We have referred to “professional
                                                            ►   Concluding remarks                                                         26
services” when referring to the operational arm
of universities, which in some jurisdictions is also
called administrative services or operations.
                                                            ►   Contact                                                                    28

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
Introduction                                                                            Our findings are distilled
                                                                                                                         into seven key themes:

                                 University Chief Operating Officers          It is often said that good leaders never   The evolving COO. Whereas once the
                                 (COOs) in Australia, Canada,                 waste a good crisis. The emergence         COO was the lead administrator and
                                 Ireland, New Zealand and the UK              from the pandemic offers a once-in-a-      then later risk manager, now they are
                                 are emerging from two years of               lifetime opportunity for COOs to make      required to also play the role of strategic
                                 operational hypervigilance. These            major changes and embed them for the       partner to the executive.
                                 two years were a time of financial           future. As part of university leadership
                                                                                                                         Data-led decisions. A trend toward
                                 shocks, staff restructures, accelerated      teams, every COO is thinking carefully
                                                                                                                         ‘informed decisiveness’ is helping COOs
                                 shifts to virtual learning, eerily quiet     about the changes that are right for
                                                                                                                         cut through the paradox of choice and
                                 campuses, and students and staff             their institution.
                                                                                                                         exhaustive strategic processes.
                                 seeking wellbeing support en masse.
                                                                              To help with this bold thinking,
    The challenge of rapidly     This presented immense challenges
                                                                              Nous Group surveyed more than
                                                                                                                         Financial fortunes. The speed at which
                                 but also interesting lessons and                                                        institutions return to financial surplus
    changing a system            opportunities.
                                                                              70 university operational leaders
                                                                                                                         depends on where those institutions
                                                                              from across Australia, Canada, New
                                                                                                                         are but there is much COOs can do to
    while it is in operation     In this time, universities and their         Zealand and the UK to understand
                                                                                                                         establish long-term sustainability.
                                 COOs were forced to make faster              their priorities and their sense of the
    is often described as        decisions but then experienced               opportunity ahead. From this, we have      The digital challenge. The pandemic
                                 internal barriers to change and              distilled priorities, role developments    necessitated rapid digital change and
    “building the plane          agility more acutely than ever before.       and strategic aspirations that we think    now COOs have an opportunity to
                                                                                                                         use the momentum to push through
    while flying it”. However,   COOs had the opportunity to rapidly          will characterise what great university
                                                                                                                         efficiency and quality gains across the
                                 transform their operations on multiple       COOs and senior leadership teams will
    as we uncovered, for         fronts in parallel and, through this, find   do next.                                   institution.
                                 new ways to partner with - and at times                                                 Tomorrow’s campus, today. While the
    university COOs the          lead - their executive peers. COOs also                                                 traditional university campus is having
                                 learnt how to drive performance, but
    challenge goes further       often with less resources.
                                                                                                                         an identity crisis, it is still central to the
                                                                                                                         student and staff experience, which
    – they are seeking to                                                                                                means there are plenty of challenges to
                                                                                                                         work through.
    design the structures
                                                                                                                         Talent attraction. Competition for
    of a system while it                                                             “There’s a tension being            strategic and digital skills is driving
                                                                                the person who controls the              creative responses and encouraging
    continues to meet the                                                regulation, stability, good order but           universities to invest more in their
                                                                                                                         human resources approach.
    needs of users. They                                                    also the senior manager driving
                                                                            innovation and transformation.”              Market intelligence. Given universities
    are, indeed, building                                                                                                often under invest in the area, there is
                                                                                                                         an edge to be gained by universities that
    the plan while flying it.                                                                                            achieve the nexus of market intelligence
                                                                                                                         and student recruitment approaches.
                                                                                                                         The major area of professional services
                                                                                                                         not covered in this report is student
                                                                                                                         services. We are running a more
                                                                                                                         detailed survey and report on student
                                                                                                                         services trends to explore this critical
                                                                                                                         area in more detail later in 2022.
                                                                                                                         Operating through a pandemic not
                                                                                                                         only solidified the COO’s critical role in
                                                                                                                         large, complex organisations but also
                                                                                                                         showcased their increasing strategic
                                                                                                                         value. But challenges remain. As one
                                                                                                                         operational leader noted, “There’s a
                                                                                                                         tension in being the person who controls
                                                                                                                         regulation, stability and good order
                                                                                                                         but also the senior manager driving
                                                                                                                         innovation and transformation.”

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
The evolution to service effectiveness
    THEME 1

                                     Before the pandemic, COOs were shifting                                          With the broader economy now open, the
    The evolving COO                 from a focus on regulatory compliance                                            strategic leadership role of COOs is re-
                                     and institutional risk management to a                                           emerging with a clearer focus on service
    | Administrator                  focus on strategic leadership. But the                                           effectiveness. In fact, more than three-
    to Chief Risk                    pandemic was a time of extreme stress
                                     for university leaders so many COOs
                                                                                                                      in-four COOs in our global survey noted
                                                                                                                      that improving service effectiveness was
    Manager to                       focused intensely on operations.                                                 in their top three priorities.

    Strategic Partner
                                                                                    Improving service                                         77%
                                                                                        effectiveness
    Historically COOs oversaw
                                                                                       Developing the
    administration and compliance,                                                   capability of staff
                                                                                                                                        60%                                More than three quarters of

                                      Rated by COO as a top three priority (%)
    then they began to manage                                                                                                                                             COOs rank improving service
    enterprise risk. Now, they are                                                  Improving service
                                                                                                                                  53%
                                                                                                                                                                          effectiveness as a priority for
                                                                                            efficiency                                                                        the coming five years
    also the Strategic Partner
    to the Executive with a focus
                                                                                   Digitising processes                         47%
    on service effectiveness.
    This represents a two-step
    change in the COO role where                                                 Automating processes                     30%
    each new state builds on (not
    replaces) the prior one.                                                     Developing campuses            16%

                                                                                     Redesigning roles          14%

                                                                                  Centralising services    4%

                                                                                                                                                                      “We just didn’t have time
                                     This focus is not a surprise, as the move to digitally enabled service models has triggered
                                     demand for a more service-oriented culture from students, academics and professional                                             to breathe over the past
                                     staff alike. For students, the introduction and/or increase in student fees, their                                               two years. If I wasn’t
                                     experience in other industries, and the wider perception of universities as providers and                                        opening the campus,
                                     themselves as customers makes them particularly sensitive to service quality. COOs are                                           I was closing it down.”
                                     often responsible for institutional services from HR and IT through to student services
                                     and marketing and are, therefore, acutely aware of the impact poor student and/or staff                                          COO of an Australian Go8
                                     experience has on the institution.

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
Stepping up as institutional
    change leaders

    The challenge noted by COOs is that
    ineffective services are often caused by dated                                                                         People leadership was the skill development priority most commonly identified by COOs
    or poorly designed digital systems and an
    unwillingness of staff to adopt new systems
    and process. Universities often say their
    ‘digital deficit’ is a contributing factor.                                                                                                   People leadership     75%
    Therefore, COOs recognise people leadership,
    rather than just service improvement, as the
                                                                                                                                                 Business analytics     42%
    key to unlocking service effectiveness. As
    one COO noted, “The higher education sector

                                                     Skill development priority in professional services teams (% agree)
    is more change resistant than other sectors                                                                                      Service improvement expertise      42%
    including government.” Pushed further, the
    compliance role of operational functions can
    hinder a better user experience for staff and                                                                                      Cross-portfolio collaboration    39%
    students and is an underlying driver for this
    change resistance.
                                                                                                                                  Agile development / management        35%
    Strategic change management is becoming
    a crucial string to a COO’s bow. Universities
    must invest to support their people to                                                                                 Vision setting and dealing with ambiguity    32%
    adapt to new ways of working and COOs are
    accountable for those changes.
                                                                                                                                                       Data literacy    11%

                                                                                                                                  Efficiency improvement expertise      11%

                                                                                                                                          Stakeholder engagement        9%

                                                                                                                                                  Financial analysis    5%

    “There’s a tension being the person
    who controls the regulation,
    stability, good order but also the
    senior manager driving innovation,
    transformation.”

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
IN PRACTICE 1
THEME 2                                                                                                                                                                                        A leading New Zealand university and founding member of the UniForum program,
                                                                                                                                                                                               successfully navigated the significant restrictions imposed by the New Zealand
                                                                                                                                                                                               Government in response to COVID-19. The response was enabled by clear
Data-led decisions | A new pace and style for COOs                                                                   Leadership and strategic                                                  communication, data-informed decision-making using information that had wide
                                                                                                                     communication enabled staff                                               support and the ability to rapidly redeploy resources between academic divisions
                                                                                                                                                                                               to meet rapidly changing demands. This agility came from their use of common
                                                                                                                     to maintain pace of change                                                roles across the academic divisions.
A new pace and style of decision making – ‘informed decisiveness’ – was established during the
pandemic. This was enabled by clear and consistent communication of strategic objectives, a
willingness to champion change and co-sponsorship with academic leaders. COOs said change                            Our global COO survey found the core
management and better use of data analytics are essential to maintaining this new model of                           ingredients of rapid and successful
                                                                                                                     change are clear and consistent
decision making.
                                                                                                                     communication of strategic objectives, a                                   People leadership is a persistent priority for professional services,
                                                                                                                     willingness to champion change and for                                   while internal stakeholder engagement will give way to evidence-based
                                                                                                                     co-sponsorship with academic leaders.                                                    decision-making over the next five years.

                                                                                                                     The need for quick and difficult choices
                                                                                                                     has brought challenges for some
                                                                                                                     universities, such as staff burnout and
                                                                                                                                                                                                                                                                              84%
                                                                                                                     leadership losing the trust of their                                               People leadership
                                                                                                                                                                                                                                                                        79%
                                                                                                                     people.
                                                                                                                                                                                                                                                                 67%
                                                                                                                                                                                                                  Strategic
                                                                                                                                                                                                                                                                65%
                                                                                                                               Important leadership attribute in
                                                                                                                             professional services teams (% agree)                                                                                        40%
                                                                                                                                                                                                Infrastructure leadership
                                                                                                                                                                                                                                                           44%

COVID-19 proved universities can rapidly adapt                                                                                                                                                             Cross-portfolio                               37%
                                                                                                                                                                                                             collaboration
how they work                                                                                                                                   Clear and consistent                                                                                     37%
                                                                                            Communication of
                                                                                         strategic objectives was
                                                                                                                             70%                communication of key
                                                                                                                                                strategic objectives                                 Internal stakeholder                               35%
                                                                                        most frequently ranked as                                                                                            engagement                                          -24%
Universities’ responses to COVID-19      service technology platforms.                                                                                                                                                                    11%
                                                                                          an important attribute
proved the power of coordinated and                                                        of university leaders                                                                                          Evidence-based                            25%
                                         These rapid responses, delivered                                                       9%                                                                                                                               +17%
faster-moving strategy and the ability                                                                                                                                                                    decision-making
                                         through ‘informed decisiveness’, have                                                                                                                                                                            42%
of COOs to enable significant change.
                                         not always been perfect but have                                                                       Willingness to visibly
Notwithstanding the hyper-operational
                                         allowed universities to iterate on                                                  49%                champion big decisions                              External stakeholder                   12%
focus of many operational functions,                                                                                                            once taken                                                  engagement
                                                                                                                                                                                                                                                 19%
                                         changes to continuously improve and
COOs’ old ways of working simply
                                         swiftly transform what they offer. This
could not continue. Many universities
                                         demonstrates the potential to build                                                                                                               Top three priority in professional         At present
established a change momentum
                                         momentum for strategic change. It also                                                                                                                    services teams (% agree)           Across next five years
otherwise thought impossible. For
                                         contrasts with the traditional approach
example, over the past two years,                                                                                                               Active co-leadership of
universities have rapidly digitised
                                         to university strategy: methodically
                                         engaging through committee structures
                                                                                                                            44%                 big change initiatives                    Data analytics is the next big step
courses, reorganised student support                                                 “We are in a period of
                                         to socialise and execute strategy and
services and channels, implemented                                                   political uncertainty, with
                                         organisational change over several years.
many online forms and created self-                                                  the outcome unclear but                                                                              Data analytics is an emerging tool to support the decision making. As a COO of
                                                                                     ongoing transformation                                                                               an Australian Group of Eight university put it, “data drives everything”. But data is
                                                                                                                                                Recognition of the                        not currently driving strategic decision making across all universities. From our
                                                                                     is non-negotiable. This
                                                                                     will require a more agile               21%                resources required to                     survey, just one-in-four COOs (25 per cent) said evidence-based decision-making
                                                                                                                                                deliver                                   was currently a high priority. However, 42 per cent rate it as a high priority over
                                                                                     and adaptable workforce                                                                              the coming three to five years.
                                                                                     and focus on key drivers                                                                             From Nous’ work with universities on large strategic initiatives and operational
                                                                                     and evidence to ensure                                                                               improvements, universities that have invested in data analytics experienced a
                                                                                     that change is meeting its                                                                           step change in their speed and confidence of their with strategic decision making.
                                                                                                                                                Permission to take
                                                                                     objectives.”                            16%                appropriate decisions
                                                                                                                                                                                          The challenge for COOs is to establish good data governance and clear data
                                                                                                                                                independently                             ownership, and to ensure data is shared appropriately across the institution and
                                                                                     COO of a mid-sized UK                                                                                not held too tightly and with too few people. COOs will also need to develop the
                                                                                     university                                                                                           skills to use data to support change initiatives throughout implementation.

                                                                                                                    1
                                                                                                                      James Catts, How smart transformation has enabled a flexible and effective response to COVID-19-19, UniForum,
                                                                                                                    24/06/2021, https://insights.uniforum.co/uniforum-insights/how-smart-transformation-has-enabled-a-
10                                                                                                                  flexible-and-effective-response-to-COVID-19/                                                                             Nous Group University COO Survey       11
Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
THEME 3
                                                                                                                                 Northern Hemisphere institutions are upbeat about financial
                                                                                                                             performance but Southern Hemisphere institutions are more gloomy
     Financial fortunes |

                                                                        Attitude to financial performance (% agree)
     Establishing long-term                                                                                           We are projecting much better financial
                                                                                                                                                                 15%      9%
                                                                                                                     performance compared to previous years
     sustainability                                                                                                                                              8% 45%
                                                                                                                            We are projecting better financial
                                                                                                                     performance compared to previous years
     COVID-19’s timing has led to a geographic                                                                                                                   31%                27%
                                                                                                                            We are projecting similar financial
     bifurcation of the financial fortunes of                                                                                  performance to previous years
     universities: the Northern Hemisphere expects
                                                                                                                                                                 46%                    16%
     to rebound quickly while Australia and New                                                                             We are projecting worse financial
                                                                                                                     performance compared to previous years
     Zealand will take longer. Most COOs see a
     return to financial sustainability within three                                                                                                             2%
                                                                                                                       We are projecting much worse financial
     years. COOs have several levers available                                                                       performance compared to previous years
     to improve financials, but the challenge is                                                                                                                                                  Australia and NZ
                                                                                                                                                                                                  UK, Canada and Ireland
     to ensure financial restructuring genuinely
     establishes long-term sustainability.

                                                                                                                                   37%    Already there
     Universities’ current financial health                                                                                         4%    0-2 years
     depends on geography                                                                                                          37%    2-3 years
                                                                                                                                   16%    3-5 years
                                                                                                                                    7%    5+ years
     The financial performance of universities is a two-speed
     story. In the UK, Canada and Ireland, 81 per cent of                                                                            Time                                                  Most institutions
     universities expect similar or better performance compared                                                                  to position of                                         expect to be financially
     to the initial pandemic years. In Australia and New Zealand,                                                               stable financial                                           sustainable within
     it is only 54 per cent. This result aligns with the timing of                                                               sustainability                                              three years
     COVID-19 and governments’ responses. In the Southern                                                                          (% agree)
     Hemisphere, the pandemic hit just as international students
     were due to come to campus and the government instituted
     tighter border controls than almost anywhere in the world.
     Importantly, four-out-of-five institutions said they would be
     in a stable financial position within three years. This speaks
     to higher education’s ability to find solutions to the financial
     challenges of the past two years.

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
The levers for financial recovery are diverse

Throughout the pandemic, COOs                          This is likely due in part to the point in        “We are undertaking a
have pursued a range of strategies to                  time when the survey was conducted – at           careful review of all spend
maintain target surpluses. Expanding                   a time when Europe and North America              (pay and non-pay) across
international student intake, the most                 had already re-opened their boarders,
                                                                                                         the institution to make
popular approach, was cited by two-in-                 and when Australia and New Zealand still
five COOs. As borders open, in-person                  had no firm date for the re-opening of
                                                                                                         sure we are investing in
international study again becomes a                    theirs.                                           the most important things
reality. But the sector has become more                                                                  to deliver our strategy.”
                                                       In all regions, outsourcing - once
sophisticated in its attraction strategies,
                                                       considered a quick fix to reduce cost and
so many universities will find it more                                                                   COO of a Russell Group
                                                       complexity - is not popular as a path to
difficult to fill their places.
                                                       short-term cost savings. Some COOs
                                                                                                         university in the UK            Sustainment mechanisms hard
Finding efficiency in professional                     found that outsourcing even increased                                             to implement but essential
services was also popular as universities              costs (for example, if they outsource
sought to retain their academics.                      catering they must subsidise meals). But                                                                                          “We are mindful of a general
Rationalisation of programmes to                       outsourcing can:                                                                  COOs will need to monitor the sustainability    reduction of expenditure
increase financial returns is on the radar                                                                                               of cost reduction approaches because some
                                                       • Reduce capital expenditure (for                                                                                                 and tight controls, but it
of some COOs, with complex discussions                                                                                                   costs are easy to cut initially but create
required with academic leaders and staff
                                                         example, allow developers to build
                                                                                                                                         larger, unavoidable costs later. Estates are
                                                                                                                                                                                         can result in damage. For
                                                         student accommodation)                                                                                                          example: impact on long term
to see such efforts through.                                                                             “How we manage our estate       the most common example – reducing the
                                                       • Increase the quality of outcomes (for           and what we outsource is        long-term maintenance budget is simple          maintenance costs.”
It is worth noting the difference in
                                                         example, get expert businesses to                                               but often leads to a backlog of long-term
priorities cited by COOs in Australia                                                                    an opportunity. Universities                                                    COO of a Russell Group university
                                                         offer services rather than use thin                                             maintenance and increased institutional risk.
and New Zealand compared to those in
                                                         university resources)                           need to recognise they are                                                      in the UK
the UK, Canada and Ireland. There is a                                                                   not builders or developers      The higher education sector is familiar with
markedly greater focus from the former                 • Reduce risk (for example, use a                                                 cost fallouts. Even before the pandemic,
                                                                                                         – we need to get really good
on efficiencies and fees, while their                    managed service provider for                                                    several universities took cost out only for
colleagues in the Northern Hemisphere                    infrastructure maintenance).                    at partnering. The flow         it to return within a few years. To build
looked to international student intake                                                                   of capital coming into the      back better, universities need to not only
and rethinking how they use their estate.                                                                sector is a big opportunity.”   lower their cost base strategically but also
                                                                                                                                         to implement sustainment mechanisms,
                                                                                                         COO of a STEM-focused           including budget model improvements,
                                                                                                         university in the UK            hiring or position controls, and end-to-end
                                                                                                                                         service model redesign.
                                                                    38%       61%
Expanding international enrolment

                                                                    54%       39%
Improving efficiency of support services

                                                                     15%      32%
Improving utilisation of estates/buildings

                                                                    46%       18%
Removing low margin courses

                                                                    23%       20%
Increasing course fees

                                                                         0%   2%                             Expanding international
Outsourcing                                                                                                enrolment has been the most
                                                                    23%       27%                          common strategy to maintain
Other                                                                                                            target surpluses

% respondents in affirmation                  Australia and New Zealand          UK, Canada and Ireland

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Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
THEME 4                                                                                                                                                                       Automation is the next significant digital priority

The digital challenge |
                                                                                                                                                                              Against a backdrop of the need to              efficiency gains of 40 per cent to 70 per         “Digital transformation
The great step change                                                                                                                                                         modernise service delivery and                 cent in functions such as HR, finance             in student acquisition
                                                                                                                                                                              improve service effectiveness, process         and admissions. With roughly half of
                                                                                                                                                    “IT must develop                                                                                                           and service delivery will
                                                                                                                                                                              digitisation and automation has emerged        professional services in a university
The pandemic forced a great step change for digital investment in                                                                                   and keep pace with        as a clear priority for many COOs. One         being transactional, the potential is
                                                                                                                                                                                                                                                                               enhance the financial
universities to improve IT systems and infrastructure. COOs see                                                                                     new expectations of       respondent COO asked, “If you can do           significant.                                      performance of the
process automation beginning to emerge but scaled efficiency                                                                                        generations who have      it with mortgage applications, why not                                                           university, allowing greater
                                                                                                                                                                                                                             Automation is necessary to allow
gains are yet be realised. Universities continue to struggle with                                                                                   grown up with different   admissions?” COOs see automation as
                                                                                                                                                                                                                             professional services to take on more
                                                                                                                                                                                                                                                                               investment in academic
                                                                                                                                                    capabilities.”            not only a mechanism to support the                                                              activity and improvement in
change management.                                                                                                                                                                                                           strategic activities. The time saved
                                                                                                                                                                              service experience but also to reduce
                                                                                                                                                                                                                             from manual and transactional work                rankings and recognition,
                                                                                                                                                                              repetitive transactional work and cost.
                                                                                                                                                                                                                             can be converted into analysis, planning          thus producing a virtuous
                                                                                                                                                                              Universities are at the start of their         and implementation of programmes of               cycle of growth.”
                                                                                                                                                                              automation journey. Studies on                 change and improvement that improve
                                                                                                                                                                              automation have found process                  enhance performance and reduce cost.              COO of an Australian Go8

Digital investment is high                                                                                        The majority of institutions have ramped up
                                                                                                                                                                              The human side of digital is the Achilles heel
and will remain so                                                                                                    digital investment in the past year
                                               Changes to digital investment in the past

                                                                                                                                                                              Legacy systems can drain efficiency and        whom has overseen big IT infrastructure            IN PRACTICE
                                                                                                         We have ramped up investment
Institutions worked intensively during the                                                                                                  19%                               preclude universities from mining their        projects, said they struggled to bring
                                                                                                                  to a significant extent                                                                                                                                        Nous partnered with a UK university
pandemic to build digital infrastructure                                                                                                                                      data for insight. But universities that        university staff along on the ‘change
                                                                                                          We have ramped up investment      40%                                                                                                                                 to develop a five-year Digital Strategy.
that would support student and academic                                                                                                                                       attempt system renewal often find it           journey’. The prospects for success can            The strategy needed a solid digital
                                                               year (%)

life. Examples range from providing                                                                                                                                           expensive and slow, and too often it fails     be improved by working through job
                                                                                                        We are continuing much as before    23%                                                                                                                                 foundation, given it required a new
platforms to enable online learning and                                                                                                                                       to deliver the promised improvements. A        redesign and rethinking core processes             culture, new ways of working, new
teaching, to converting paper forms                                                                      We have reduced investment to                                                                                                                                          digital skills and capabilities for
                                                                                                                                            16%                               critical challenge in this is the prevailing   rather than building the technology
                                                                                                                           some extent                                                                                                                                          supporting staff and students.
in accounts receivable to automated                                                                                                                                           resistance to adopting service models          around established practices.
                                                                                                         We have reduced investment to
processes. Survey responses confirmed                                                                                                         2%                              that modern workflow systems are built                                                            We then worked with the university
                                                                                                                    a significant extent                                                                                      Ultimately, successful digital changes
this, finding most COOs increased digital                                                                                                                                     to support, resulting in legacy ways of                                                           to develop a detailed implementation
                                                                                                                                                                                                                             require a complex set of instruments               plan, which included change
investment over the past 12 months.                                                                                                                                           working and of resourcing services that
                                                                                                                                                                                                                             – and people - to work together. For               management, engagement with staff
The challenge for COOs is to sustain this                                                                                                                                     use only a fraction of the capabilities of                                                        and students, benefits realisation,
                                                                                                                                                                                                                             example:
digital investment and the value provided.                                                                                                                                    the new systems being implemented. To                                                             and initiative prioritisation. The
                                                                                                            IT infrastructure and systems were most often ranked as
As one COO said, “An institution can look                                                                  important professional administrative services to support          overcome this, the CIO must find ways          • the implementation approach must                 plan and ongoing work showed the
very old fashioned very quickly if it does                                                                                    teaching and learning                           to work in concert with the COO, other           properly identify the root problem;              benefit the digital strategy will deliver
not embrace some of the digital/mobile-                                                                                                                                                                                                                                         to the university’s community in
                                                                                                                                                                              functional leaders and with the academic
                                                                                                                                                                                                                             • leaders must procure a cost-effective            order to generate buy-in and deliver
first approaches adopted across society.”                                                                                                                                     division leadership.                                                                              sustainable change.
                                                                                                                                                                                                                               IT solution that will work alongside the
                                                                                                            IT infrastructure and systems   65%
                                                   Important professional administrative services to

Correspondingly, UniForum, a                                                                                                                                                  Additional challenges benefiting from IT         rest of the university’s digital estate;
collaborative university benchmarking                                                                                                                                                                                          and
                                                       support teaching and learning (% agree)

                                                                                                                        Student support                                       investments include poor procurement,
                                                                                                                                            54%
program delivered by Cubane (a Nous                                                                                                                                           lack of project accountability, scope
                                                                                                                                                                                                                             • finance must allocate sufficient
Group company) has been monitoring the                                                                              Student recruitment     46%                               shift, and simply scale and complexity.
                                                                                                                                                                                                                               investment for software configuration
‘As a Service’ spend among its members                                                                                                                                        A Russell Group COO described
                                                                                                          Learning and teaching support
                                                                                                                                                                                                                               and proper people change
for the past five years. Unsurprisingly,                                                                                                    44%                               these IT systems implementations as
                                                                                                                                                                                                                               management.
it has been growing rapidly. What is                                                                          Recruitment and retention                                       “simultaneously a project and forever”.
                                                                                                                                            35%
surprising is that it is not as a substitute                                                                          of specialist staff                                                                                    Plus, after all this, leaders must foster
                                                                                                                                                                              Across all markets – and as with other
for in-house spend on supporting and                                                                                                                                                                                         a culture of continuous improvement
                                                                                                                     Market intelligence    30%                               industries - the major barriers to success
maintaining in-house IT services and                                                                                                                                                                                         and adaptation once implementation is
                                                                                                                                                                              often relate to behaviour and culture.
applications. A key plank in the CIO’s                                                                         Training and development     16%                                                                              complete.
                                                                                                                                                                              The Canadian COOs we spoke to, each of
strategy needs to be how to turn off
legacy systems.                                                                                        Programme pricing and economics      11%

16                                                                                                                                                                                                                                                                        Nous Group University COO Survey           17
Nous Group University COO Survey - Building the plane plan while flying it: the challenges of a contemporary university COO
THEME 5

     Tomorrow’s                          Campus investment fell during the pandemic

     campus, today |
                                         For the same reasons digital investment one-in-five has increased it. During the
     The estate challenge                pandemic, campus (or estate) investment declined. Nearly half of all COOs surveyed
                                         have reduced spending on estates and only one-in-five have increased. Universities
                                         have also spent less on maintenance during the pandemic, an unsustainable trend.
     The traditional university cam-
     pus is having an identity crisis.
                                                                                                     9%
     Investment is down. Students
     don’t want to go to large lecture
     theatres. Staff don’t want to             4%                                  35%                                   16%
     commute five days a week. Many
     questions remain but COOs know
     the post-pandemic campus will
     not be the same as the pre-pan-
     demic campus.                       We have ramped up                  We have ramped up                     We are continuing much
                                         investment to a                    investment to some                    as before
                                         significant extent                  extent

                                                  Investment in building and estates has gently reduced over the past year

                                                                29%                                   16%

                                                          We have reduced                      We have reduced
                                                          investment to some                   investment to a significant
                                                          extent                               extent

                                                      Changes to major capital (building/estates) investment in the past year (%)

18                                                                                                                                         Nous Group University COO Survey   19
Campus experience is a core                     Universities are rethinking the office
value proposition for students                  proposition for staff

Nearly four-in-five surveyed COOs said          The use of space also impacts            culture change initiatives to boost
that improving the on-campus experience         the university’s workforce. Like         productivity, agility and collaboration.
for students was a major enabler of their       all organisations, universities are      An Australian COO said, “If we claim to
institutional strategy. Following reduced       rethinking office space. Employers are   be aligned to industry, we need to look
investment during the pandemic, COOs            responding to two years of isolation     more like industry.”                       “A big shift is required
are grappling with significant questions        with more flexible working, reliance                                                to build an engaging on-
                                                                                         New ways of working must tie in with
about their estate:                             on digital communication and even                                                   campus experience for
                                                                                         a university’s strategy to improve
                                                experimentation with the length of                                                  staff and students. This will
• What is the campus’ role in providing                                                  campus experience for students.
                                                the working week. University staff are
  students with the structures they need                                                 Academic staff may still be required       require new capabilities for
                                                reticent to accept going back to how
  to succeed in their studies?                                                           to spend much of their time on             staff; new enablers such
                                                things were pre-pandemic..
                                                                                         campus for in-person teaching and          as different physical and
• What is the role of large auditoriums or
                                                Re-opening provides an opportunity       informal learning opportunities while
  seminar rooms as well as spaces with                                                                                              digital spaces; new roles and
                                                for COOs to use their campuses           operational services staff may be more
  technology for blended learning and                                                                                               processes to support student,
                                                in innovative ways. For example,         able to work remotely. COOs must think
  collaborative research?
                                                instituting home-office policies and     carefully about how flexible options for   academics and co-curricular
• What are the right priorities for capital     shared workspaces can free up more       staff, which improve staff experience      experiences; and support
  expenditure?                                  space for teaching and reduce pressure   and help attract talent, will impact       for academic staff to deliver
                                                on estates. Redesign and upgrade of      providing a great student experience on    changed value propositions.”
Aligning campuses and teaching spaces
                                                office space or moving to a four-day     the campus of tomorrow.
to post-pandemic student expectations
                                                work week could be coupled with                                                     COO of New Zealand university
will take years to realise. Many universities
will implement smart campus solutions
to create a seamless digital and physical
estate. But more immediate returns may
be reaped by more cosmetic changes
such as getting the right composition
of food and retail on campus, creating
more opportunities for community use of
campus facilities, and investing in green
spaces. These relatively small changes
can help create a ‘sticky’ campus where
students spend more time, enabling
stronger communities that attract
prospective students.

20                                                                                                                                                                  Nous Group University COO Survey   21
THEME 6

Talent attraction | Fierce competition for strategic and
digital skills

Sourcing talent is a growing challenge for COOs and their leadership teams. Competition for strategic
and digital skills is fierce, both within the sector and across the economy. While more can be done to
recruit and onboard external talent, the greatest untapped source is graduating students from their
own organisations.

People with technical skills                Sector outsiders encounter barriers when entering                                                                           Universities must upgrade their capability and embrace
are hard to recruit                         higher education                                                                                                            creative solutions to talent development

COOs are facing into the headwinds of       To address talent gaps, COOs are looking outside the higher education sector.                                               Competition with other sectors means finding and developing talent is crucial to filling
the global talent shortage. More than       Universities can present a compelling value proposition to potential out-of-sector                                          skill gaps. COOs identified both difficult and creative options to find and nurture talent:
half the COOs surveyed (54 per cent)        recruits. However, there are barriers to transition effectively into administrative roles.
                                                                                                                                                                        • The difficult. Investing more in the talent attraction and retention capabilities
reported only being able to fill priority
                                            In some instances, universities oversell a position or underestimate the work required       “People coming from within       in human resources teams and addressing performance management will help
positions half the time. This is caused
                                            to induct non-sector recruits. This can apply to more than just operational roles. In an                                      universities make more of their professional services people. This investment will
by a range of factors, including negative                                                                                                the sector don’t seem to
                                            anecdote shared by a COO of a large UK university, the job advertisement for the head                                         also help to develop and retain future managers and senior leaders. An underlying
perceptions of higher education as an                                                                                                    have a ‘commercial’
                                            of a new medical school failed to indicate that 65 per cent of the role was effectively                                       challenge, as noted in the example overleaf, is the transactional nature of many
industry to work within.                                                                                                                 understanding of how to
                                            fundraising, leading to a mismatch between the recruit’s expectations and skillset and                                        human resources activities in universities. Creating HR service delivery models
Most COOs identified IT experts, data       the position’s actual responsibilities.                                                      run an institution. However,     that more clearly distinguish between the transactional HR activities (e.g., recruiting
analysts and business analysts as the                                                                                                    those who come from              process support) versus the strategic HR activities (e.g., providing staffing advice)
                                            The out-of-sector recruitment challenges will persist, but universities can do more
hardest to find. Similarly, people with                                                                                                  outside struggle to              is key.
                                            to make themselves attractive and effective at onboarding talent. This starts with
strategic skills and agile experience
                                            modernising human resource departments, many of which continue to be highly                  understand the lie of the      • The creative. Graduating students from the institution are a largely untapped source
continue to be in high demand.
                                            transactional. Other changes include:                                                        land within the sector,          of future professional services talent, as most universities are yet to implement
                                                                                                                                                                          graduate recruitment programmes of the scale and sophistication of similar sized
                                            • Streamline recruitment process to reduce delays and candidate leakage, given               which can lead to
                                                                                                                                                                          organisations in analogous industries (such as Government or Professional Services).
                                              long recruitment times have caused some universities to repeatedly lose strong             frustration.”                    With universities having unparalleled access to students there are countless
                                              candidates
                                                                                                                                                                          opportunities to creatively identify and recruit undergraduate and postgraduate
                                                                                                                                         COO of a UK university
                                            • Invest in induction and onboarding processes to include pre-boarding support, buddy                                         students into the university workforce.
                                              systems and coordinated joint planning
                                            • Ensure that roles are designed with clear career pathways within the university, so
                                              the path to career progression is evident
                                            • Modernise workplace spaces to create a more collaborative and less hierarchical
                                              office culture.
“We face shortages in
all skills and capabilities
in our professional staff
(current and those we
                                                IN PRACTICE
recruit) due to a complete
                                                One UniForum member found they had created highly fragmented roles. Without
lack of parity of esteem
                                                clear career development pathways, there was little investment in training and
in the HE sector in this                        no natural communities of practice. To address this, the university instigated a
region.”                                        wholesale role redesign process to create common roles with well-defined career
                                                development pathways. As a result, communities of practice formed around common
                                                interests and staff retention increased.
COO of an Australian Go8

22                                                                                                                                                                                                                       Nous Group University COO Survey        23
Driving competitive advantage in student recruitment
     THEME 7

     Market intelligence |                                              Nous has found that the appetite for
                                                                        market intelligence is particularly strong
                                                                                                                       Sophisticated market intelligence on
                                                                                                                       target prospective students and major
                                                                                                                                                                   investigate the universities that they
                                                                                                                                                                   are most interested in. Innovators in
     Proving its worth                                                  when universities have either struggled
                                                                        with domestic student recruitment or are
                                                                                                                       country markets will help universities
                                                                                                                       invest more intelligently in recruitment
                                                                                                                                                                   this space are already creating ways to
                                                                                                                                                                   significantly speed up the application
                                                                        focused on their international strategies.     to attract the desired quality and          process and give students confidence
     Competition for students will reach new levels                     In the case of international student           quantity of students. As a result, the      in what recognised prior learning they
                                                                        recruitment, universities are often reliant    ability to integrate the market effort      will receive. They are also creating novel
     as universities seek to repair budgets. Market
                                                                        on historical market information about         with the student acquisition process        ways using social media to maintain
     intelligence, particularly when integrated                         major country markets like China, India        will become even more critical. This will   engagement with students as they
     into the student recruitment process, has the                      and South-East Asia. Where real-time           require close collaboration between         consider their university options.
     potential to provide competitive advantage                         market intelligence is collected, such         the CIO, CMO, COO and academic
     for universities. This requires a high level of                    as from in-country agents, it is not           leaders to not only generate real-
     collaboration and trust between marketing,                         necessarily shared across the relevant         time market intelligence but also to
                                                                        university decision makers as well as it       create digital assets that enhance the
     academics and other functional units across
                                                                        might be.                                      student’s experience as they respond
     the institution.                                                                                                  to the marketing effort and start to

     Better market intelligence is an emerging
     focus area

     More than 50 per cent of the COOs surveyed noted that
     international student recruitment and course pricing were the
     key drivers for generating historical target surpluses in their
     institutions. With COVID-19 hitting the system hard, COOs                                                  MARKET INTELLIGENCE
     also know that competition for students will reach new levels
     as universities seek to repair budgets. This is particularly the
     case in Australia, where COOs ranked market intelligence as
                                                                                        45%                      Nearly half of all COOs in Australia and New Zealand ranked market
                                                                                                                 intelligence as an important administrative service for evolving their
     the third most important administrative service for evolving
                                                                                                                 teaching and learning approach.
     their teaching and learning approach (45 per cent), compared
     to the rest of the countries surveyed, where COOs ranked it
     the sixth highest priority (26 per cent).

24                                                                                                                                                                 Nous Group University COO Survey        25
Concluding remarks

COOs and their functional areas of responsibility are an engine     As the decade evolves and higher education institutions         “It is clear to us that while the
room for a university. As they build on their historical roles of   progress, it will be essential for COOs and their functional
                                                                                                                                    role of the COO has only recently
compliance and risk and move more into that of a strategic          leaders to build on their strategic partner role with the
partner, COOs are indeed building the plan whilst flying it.        university. Considering this, COOs should be planning and       evolved to include that of a
                                                                    budgeting for the design and implementation of:                 strategic partner, by the end of
Working closely with COOs and their management teams, Nous
                                                                                                                                    the decade it will be more fully
is acutely aware of the tenor and mission-driven nature of          • Administration and professional service operating models
universities and the academics and professional staff that lead       that drive the interests of the whole university              realised provided COOs can action
them. This both influences how we work with universities and                                                                        these significant and strategic
                                                                    • Talent management plans driven by new specialist roles
what advice we provide to ensure changes are implemented.                                                                           organisational changes.”
                                                                      and address at a more fundamental level issues with equity,
From our global experience, we find that the critical success
                                                                      diversity and inclusion
factors in our work are strong and clear project sponsorship,
carefully crafted stakeholder engagement, depth of sector           • Digital agendas that result in a single source of truth
knowledge and sharp analytical analysis and insights.                 for student information, highly automated, end-to-end
                                                                      transactional administrative and professional services, and
Additionally, the collaborative UniForum program, delivered by
Cubane (a Nous Group company), has seen member universities
                                                                      significantly more intuitive service interfaces               Authors
and their leaders actively using insights from benchmarking         • Onmichannel service hubs for staff and students with
data, along with unique access to best practice from peers, to        curated triage and a service culture ethos
tackle head-on many of the challenges described in this report,
                                                                    • Designing and implementing integrated planning and budget      Zac Ashkanasy
and achieve truly transformational change. For example:
                                                                      processes that drive intended behaviours aligned to the        PRINCIPAL, NOUS GROUP
                                                                      strategic objectives of the whole institution                  GLOBAL HEAD OF HIGHER EDUCATION
• Taking a whole institution view of capacity available for
                                                                                                                                     zac.ashkanasy@nousgroup.com
  every service, providing the foundation for truly end-to-end
                                                                    • New master plans for campuses that better respond to the
  delivery and outcomes
                                                                      changes in staff and student preferences post COVID-19
• Ensuring that maximum capacity is available for specialist
                                                                    • Fully integrated marketing, recruitment and admission
  strategic activities, whether in HR, Finance, Student
                                                                      processes, to enable more effective competition for high
  Services or Research Support, by maximising efficiencies
                                                                      quality students in key markets.
  elsewhere, including through automation and role redesign
                                                                    We are proud to already be strategic advisors to many of the     Phil Copestake
• Designing and delivering new operating models that
                                                                    COOs that were engaged in this research, and we are often        MANAGING DIRECTOR,
  emphasise cross-functional collaboration and user-centred                                                                          CUBANE U.K AND EUROPE
                                                                    asked to support them in addressing the significant questions
  delivery, whether in the form of shared service hubs, new                                                                          phil.copestake@cubaneconsulting.com
                                                                    and challenges highlighted in the report.
  management arrangements or communities of practice.

                                                                                                                                    Additional contributions provided by Joe Bartlett-
                                                                                                                                    Marques, Stuart Revnell and Oliver Whitton.

26                                                                                                                                                                                       Nous Group University COO Survey   27
Nous Group: a leader                       Tim Orton                       Edward Curry-Hyde                        Davina McArthur
                                                MANAGING PRINCIPAL AND CEO      CEO, CUBANE                              PRINCIPAL
     in higher education                        tim.orton@nousgroup.com         edward.curry-hyde@cubaneconsulting.com   davina.mcarthur@nousgroup.com
     with global expertise

     Nous Group is an international
     management consultancy with over
     500 people working across Australia,
     New Zealand, the United Kingdom,
     Ireland and Canada. With our broad
     consulting capability, we can solve your   Hamish Ride                     Haseeb Kamal                             James Catts
                                                PRINCIPAL                       MANAGING DIRECTOR,                       MANAGING DIRECTOR, CUBANE
     most complex strategic challenges
                                                hamish.ride@nousgroup.com       CUBANE CANADA & USA                      AUSTRALIA & NEW ZEALAND
     and partner with you through
                                                                                haseeb.kamal@cubaneconsulting.com        james.catts@cubaneconsulting.com
     transformational change.
     Together, Nous and Cubane form the
     most authoritative higher education
     service business operating in the United
     Kingdom, Ireland, Canada, Australia, and
     New Zealand.

                                                Julie Mercer                    Matt Durnin                              Sarah Connelly
                                                PRINCIPAL                       PRINCIPAL                                PRINCIPAL
                                                julie.mercer@nousgroup.com      matt.durnin@nousgroup.com                sarah.connelly@nousgroup.com

                                                Simon Lancaster                 Tim Kennedy                              Trish Birtles
                                                PRINCIPAL                       PRINCIPAL                                DIRECTOR, CUBANE CONSULTING
                                                simon.lancaster@nousgroup.com   tim.kennedy@nousgroup.com                SERVICES DEVELOPMENT
                                                                                                                         trish.birtles@cubaneconsulting.com

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