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 28 April 2022
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 2 2 Nous Group University COO Survey 3
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.” 4 Nous Group University COO Survey 5
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. 6 Nous Group University COO Survey 7
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.” 8 Nous Group University COO Survey 9
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
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. 12 Nous Group University COO Survey 13
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 14 Nous Group University COO Survey 15
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
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 28
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