Sustainability and Profitability

A Turkish Example within International Context: Istanbul Bilgi University

Prof. Dr. Halil GüvenRector

Transitions in Higher Education (HE) Arena

• Transformation of societies• Empowerment of middle class• Middle class’ demand to gain access to

HE• Massification of HE versus Elitist HE of

1950s

Numerical Facts about HE

• 1.5% (100 million people) of world population in HE

• 6 million professors/lecturers worldwide(Economist, 2005; Tekeli, 2009)

Numerical Facts about HE

• From 1975 to 2000, increase in participation rate from 22% to 41% in OECD countries

• In the last 50 years, human population increased 2.5 times

(Economist, 2005; Tekeli, 2009)

Private Sector’s Involvement

• Abandonment of social state principles• Privatization of HE• State control of HE despite privatization• Autonomy and Accountability as important

issues

Business Model for HE

Sustainability and accountability in private HE require:

• Professional management support• Budget control• Business institution-like management

Private HE and Turkey

According to Turkish laws;• HE cannot be profit-seeking• Only state and foundations may establish

HE institutions• Concept of “Foundation Universities”

instead of “Private Universities”

Pressures on “Foundation Universities”

• Government and its HE regularity body; YÖK

• Founders and investors of “Foundation Universities”

Istanbul Bilgi University (BILGI)• Founded by scholars after 1980 coup d’état • Emphasis on Social Sciences• No conglomerate support• Emphasis on autonomy• BILGI identity as the main asset

“BILGI can be best described as an ‘‘intellectual power house’’, which consisted of several respected ‘’public intellectuals’’ taking strong positions on

social issues leading BILGI image of ‘’provocateur’’ and ‘’post modern anarchist. “

“BILGI can be best described as an ‘‘intellectual power house’’, which consisted of several respected ‘’public intellectuals’’ taking strong positions on

social issues leading BILGI image of ‘’provocateur’’ and ‘’post modern anarchist. “

Sustainability, Accountability and Institutionalization at BILGI

• Turkish HE industry is becoming competitive.

• Only in 2010, 16 new universities• BILGI joined Laureate International

Universities Network to increase sustainability, accountability and institutionalization.

• Through protecting autonomous structure.

How to achieve sustainability?

• Academic and managerial efficiency• Accountability and autonomy• Internationalization• Professionalism• Becoming a “Comprehensive University”

Two-perspective approach to university administration:•Administration as an academic institution•Administration as a business institution

Two-perspective approach to university administration:•Administration as an academic institution•Administration as a business institution

Strategy

• Repositioning BILGI with a future perspective of becoming a regional steering force

• Better institutionalization• Two dimensional growth: qualitative and

quantitative• Thematic focuses on environmental issues,

leadership, peace and online education

Institutional Priorities

• Institutional efficacy• Internatiolization• Innovation• Student Centricity• Vocational Training

Implementation: Comprehensive University

• Two new non-social science faculties; Engineering and Architecture

• Enlargement of Professional and Vocation Schools in the areas of health, law and fashion

Implementation: Internationalization

• Laureate International Universities Network

• Erasmus Agreements• Bilateral Agreements

• More opportunities for our students and faculty

Implementation: Two-Perspective Managerial

Paradigm

• Management Committee• Academic Excellence Committee

Implementation: Keeping Plurality and Autonomy

• Rector’s Initiatives for Environmental and Sustainability Issues, Peace Studies, and Leadership

• Keep BILGI as an influential player locally, regionally and globally

Implementation: Institutional Excellency

• A clearly defined academic organizational chart• Restructuring of the office of the Rector• Restructuring budget• Restructuring academic departments• Democratic distribution of resources and authority• Transparent and straight-forward decision

mechanisms• A centralized research tracking system (AIDA)• Outsourcing

Findings• Keeping the pre-Laureate BILGI autonomy and

democratic values• Keeping the position in the eyes of public and

intellengentsia• Concerns about compatibility between

accountability/profitability and autonomy centred BILGI culture and identity

• Resistance to inner restructuring and outsourcing• Communication tools to overcome resistance;

bulletins, faculty news website

Main message as “sustainability is essential for autonomy”Main message as “sustainability is essential for autonomy”

• Economical development and higher education• Qualified human resource for sustainable

economical development

Conclusion

Sustainable and profitable universities mean qualitatively and quantitatively enlarged higher education.

Sustainable and profitable universities mean qualitatively and quantitatively enlarged higher education.

BILGI’s strive for being sustainable and profitable lies in providing more seats for prospective students.

BILGI’s strive for being sustainable and profitable lies in providing more seats for prospective students.

Conclusion

BILGI still carries on with this process of “cultural change management” and alligning for profitable, efficiently operational and sustainable growth.

BILGI still carries on with this process of “cultural change management” and alligning for profitable, efficiently operational and sustainable growth.