Strategic management for change in higher education

Jean-Franois Denef

Honorary vice-rector for the medical affairs Universit Catholique de Louvain

Belgium

2Overview Why to change?

Contextual elements Internal elements

Change for better universities but What is a successful university ? The usual functional organization of universities Different possible changes Who is concerned by change management ?

How to manage change ? The change process Key points to make a success

Crucial role of leaders Communication

Some examples from Belgium or literature Final questions and comments

3Why to change ? Contextual elements

The world is rapidly changing Students change

The numeric student Increase of the number of students in higher education

Science is advancing : new conceptsold statements turn out to be wrong

Increased social accountability Increased and more specific demands of the society New technologies Turbulent changes of the environment

4Why to change ? Internal elements

9 Size of the institutions9 Work load despite more efficient tools9 (shift in function.)9 Functional complexity9 Increased needs9 Decreased ratio between means and needs9 Expectations of internal stakeholders9

Change is not an objective per se

1. To increase the quality 2. To increase effectiveness

In education, in research, in management,

3. To meet the everyones expectations (financial or other )

To make our university a successful university

6Successful universities are successful because of their teaching and research,

not because of their management.

But good management can over timeprovide the conditions in which

teaching and research can flourish

M. Shattock. Managing successful universities, 2003

Whats a successful university ?

7Whats quality or success? Quality is a key element allowing

universities to respond to the needs related to the evolution of their environment.

European University association (EUA) Forum on quality assurance (Munich, 2006)

Future success of universities depends on academics capacity to respond energetically to change

Ramsden, 2002

8Which criteria to define a successful university

Size?

Number of students Number of workers Ratio workers/students

Productivity

Number of diplomas Number of scientific publications Success rate of students

Autonomy Legal Financial

Performances of facilities

Libraries Research facilities Access to global information Ratio between size and means Quality of management

Real fit with social demands Prospective strategic view

Financing

9 But should also be taken into account

Satisfaction of the stakeholders Historical context The Halo effect

The experts are not just wrong, but deluded !*

Rosenzweig P, 2007

10

How to increase success in universities Increased attractivity

of scientists of good students (for example Ph.D.) of managers or staff of funding .

Broadening of the boundaries

New and more adapted programs New research themes Increased autonomy Networking of universities, from collaboration to merger

In fact building an offer which is better adapted to the higher education market

Changes in the internal context : organization, collegiality, leadership

And thus change in management and management of change

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Some specific aspects of universities as social organizations Academic freedom Strong collegial culture Academics interest more focused on their

own disciplines than on institution Absence of objective workload measure Different rewarding mechanisms for

research, teaching or management

Adapted from Paewai et al., 2007

12

Two extreme functional organization types

Decentralized holdings

Each entity has its own objectives Each one receives the means to reach them Each one can choose the ways to do it.

Process centred approaches

All common and transversal functions are identified They are removed from entities and grouped By this way, cost reductions are important An enhanced professionalism can be introduced

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Policy definition

Loose

Tight

Loose TightControl of

implementation

A : Collegium B : Bureaucracy

C : Enterprise D : Corporation

Adapted from Ramsden, 2002

Models for university governance

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How to manage change

Initial conditions needed to start a change When to change The change process

Curve of change Phases of change

Key role of the leaders in change Communication during change

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Who is concerned in strategic management for change?

SocietyUniversity

FacultyDepartment

TeamsIndividuals

The key role of leaders

must be considered

at each level

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How is anyone concerned by change ?

GettingGetting anyoneanyone workingworking bothbothwithwith brainbrain and handsand hands

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What kind of change Pedagogical (programs, evaluation, ) Functional (relations between )

Financial Reporting, accountability

Structural Internal (larger entities, ) External (cooperation, association, consortium, merger,)

Regulatory Legal status Size and role of authorities

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Conditions required to implement changes

Leadership Evaluation of the social consequences Process for consulting stakeholders and to

reach a consensus More transparency, more involvement of all

groups in the management and decision for change

Need for the stakeholders to understand which are the gain of the change in term of quality and equity

Experton W., Mondial bank CUD 2009

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Definition

Strategic management is the art and the science of formulating, implementing and evaluating cross functional decisions which enable an institution to fulfil its decisions.

David FR, Strategic management, 1996

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When to change

Time

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Anticipatory change

Reactive Change

Continuou

s

learning a

nd

renewal

Crisis Change

Failure

Adapted from Lane et al., 2009

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Phasing the change process

Transition phaseStarting position Progress phase

To create o favorable environment

Vision

Adhesion

Implementation

Evaluation of progress

Perennisation

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Inadequate

organization

TimeTime

StagnationStagnation

The curve

of changeSuccessSuccess

Positive Results

FailureFailureMonitoringMonitoringImplemen- tation

Implemen- tation

Planification and

communication

PreparationPreparation

Lenviede changeratteint lamassecritique

DecisionProject of change

Adapted from J. Duck , Boston Consulting Group, 2001

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Key role of the leaders in change management

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Task Manager Leader

To build up a project Planning and budget Defines a vision

To develop human relations

Task forcesTask distributions

Gets consensus from groups and individuals

To implement the project

Control of processProblem solving

Motivates staffGives senses to his action

Rsults To build up a structure

To make a change

Manager or leader ?

Ramsden, p. 110

27

Equilibrium between

listening from peoples ideas and needs(bottom-up)

And giving new orientations (top-down)

Motivation : A leader must be able to animate

Present new ideas, manage debates and reflexion,

Colloque IP3S, Marrakech 2008

In latin word : anima = the soulTo animate = to give a soul

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To give a meaning for change

Success for changes depends on

Will of the leaders X level of people acceptance

Key opinion leaders (KOL)

29Adapted from Ramsden, 1998

Academic governance :Values, vision, objectives

Strategy

Academic management :Administration, daily management

Distribution of tasks

Academic communication:

MotivationInterpersonal

relations

Academic missions :Specificity

RecruitmentEvaluation

Leader

Deans school (International conference)

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Effectiveness of a leader

What makes an effective executiveHarvard Business review, 2004

What should I do ? Now?

What should I delegate ?

Am I able to run efficient meetings

Am I able to define what is good for my institution?

Do I speak as we

What should I do by myself

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To help my collaborators to do better work in teaching, research or service

To promote conception, planification or implementation ofstrategic plans in the university

To better understand how and why new projects or technologies can improve the effectiveness

of my work or that of my collaborators

Lets make a personal test !Fundamental missions of a leader in high education

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None 1

Poor2

Signif.3

High5

Meetings at rectorate

Administrative meetings

Meetings in faculty

Meetings in departments

Appointments

Paper work

Telephone calls

Social events

Travels

Others

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Model of governance

Pol itical

Ad ministrative

Ex cutive

Boards and councils

Faculty administration

Teachers, students

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Functional organization

The ideal model

What individualsmight think about theirown position

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Functional organization

Whats happening in many cases In higher education

Whats happening when change and negotiations are not well conducted

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From an leader I expect the following personal capacities :

Courage Wisdom Equity Humaneness Severeness

Sun Tsu

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To survive, you need a sanctuary

where you can

reflect on the previous days journey,renew your emotional resources andrecalibrate your moral compass

A survival guide for leaders, HBR, 2002

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A leader is a dealer of hope(Bonaparte)

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Key role of communication

Do not confound information and communication

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What do you see ?

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Why do people resist to change?

Loss of control

To much uncertainty

Surprise

Loss of his personal self confidence

Fear of the future

Rebound effects

Work overload

Personal attachment to the past

Contamination problems

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Obstacles for change and progress

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Ractions facing change

Over My Dead Body Group : they are pessisitic and will be claiming against change if any trouble

Good Idea Lets try !

It will never work !Why not ?

EarlyEarlymajoritymajority

LateLatemajoritymajority

supporterssupporters OMDBGOMDBG

Supporters:Supporters: They like to take risks, are impatient, put pressure on other people

Early majorityEarly majority : are in favor of change as soon as they understand the objectives

Late majorityLate majority : ask for early results and first consider all the possible negative consequences of change

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To keep staff motivated

European center for strategic management of universities (esmu), 2008

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Implementation of the project

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Motivation process can be understood by both ways

Institutional leaders

Academic staff

Institutional leaders

Academic staff

BottomBottom upup Top Top down down

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The ignorance iceberg Percent of problems known by

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The bottom up

Relations between field actors and leaders

Keep your leader informed about your initiatives Understand each other about mutual expectations

Goals and objectives Pressures Strengths, weaknesses, blind spots

Find the preferred work style between your boss and yourself

Identify his work style Selectively use your bosss time and resources

Managing your boss, Harvard Business Review, june 1993

49

Patience during management To be open to different points of vue Capacity to take and implement decisions Ability to give the Pride of working well

to his collaborators

Academic Medicine, 1998

The top down Basic soft skills expected from a dean

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Analyse

Dcide

implement

Evaluate

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Some examples from Belgium and the literature

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Mergers of universities What can be drawn for the English literature

Basic reasoning for merger close to that of commercial and business enterprises Increased competitivity Eliminating overlaps Marketing and administration Stronger balance sheet to be able to innovate Larger scale facilities to decrease costs

(minimal size ?)

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Mergers of universities What can be learned from previous

experiences Pressure for merger is often external > internal Well accepted by top management, much less

by academic staffs (universities are strong bottom-up organizations)

Difference between merger and take over Strategy needs measurable targets for the staffs Incentives ? Long term is needed to measure the effective

results

Adapted from Shattock, 2003

55

Examples from China In China : 494 mergers between 1990 and 2005

Example of Schichuan and Chengdu (1994) followed by Huaxi Med center (2000) -> the largest university of China

Pre merger connexion (1950s) Geographical proximity Program complementarities

External pressure :

Cost-effectiveness and scales economy Governmental Program 211

Selects 100 universities Concentrates in them financial support to reach excellence Introduces of competition among institutions 6 or 7 must be world class universities In summary : To make the rich richer

Wan and Peterson, 2007

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Mergers of universities Recommendation checklist

1. Which rationale : academic or strategic?2. Which clear added value for every stakeholder? 3. Allow time for negotiation4. Be aware that optimism and commitment will colour the evaluation

process5. Decide the type of governance which will follow the merger6. Be generous with staff development costs (incentives)7. Integration of the operation systems will be lengthy and costly8. Do not underestimate difficulties about property9. Allow for increased workload upon managers (before, during and

years after) the merger10. After 2 years, conduct a wide-ranging post-audit

Adapted from Rowley et al., 1997

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An experience from hospitals (focused on outcomes)

Has the merged hospital increased its ability the meet the needs and the demands of the population

Has the merged hospital increased its professional competence to satisfy rare and complex needs (specialisation)?

Is the waiting time for patients the same regardless his or her pace of location (accessibility)?

Has the quality of the services increased Has the level of health increased in the region? Has the cost/efficiency increased?

Adapted from Ahren et al., 2008

58

The Begian example Concept of academies (law Bologna 2004)

9 universities 3 clusters Academies Common management of the third cycle - doctoral schools Common financing for common projects

High schools More professional than universities 3- or 5-year programs (short long) Almost no research By-passes for students between H.S. and Universities

End of first professional cycles to second academic cycles Long HS program to Ph. D. thesis

Bologna (2004) Bachelors and Masters Agency for evaluation Intra- and inter curriculum mobility (?) Employability ?

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Merger of universities Made in 2009 : Integration of stand-alone large

faculties into universities Facult polytechnique (FPMS) and University of

Mons-Hainaut UMONS Gembloux (Agronomy) et Lige

Academy Wallonie Europe

Planned for 2010 : 4 French-speaking catholic universities of the

CFB to form UCLOUVAIN

2007 : 9 universities2009 : 7 universities2010 : 4 universities

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ACADMIE LOUVAIN

Birth of the UCLOUVAINFirst step : Acadmie Louvain

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ucl fundp fusl fucam AL augm total CfB AL ds CfB% UCL

P acadmique (2007) ETP 567 155 56 41 819 44% 1.880 43,56%Nbre 1.184 257 167 88 1.696 43%

(Ulg : 398 EFT, ULB 507 EFT)P scientifique (2007) ETP 440 177 30 25 672 53% 1.955 34,37%

Nbre 536 263 61 30 890 66%( Ulg : 674 EFT, ULB 415 EFT)PATO (2007) ETP 1.174 285 47 53 1.559 33% 3.851 40,48%

Nbre 1.433 337 58 60 1.888 32%(Ulg : 814 EFT, ULB 1085 EFT)hors-cadre ETP 1.566 291 28 23 1.908 22% 5.555 34,35%( Ulg : 1783 EFT, ULB 1377 EFT)total personnel 3.747 908 161 142 4.958 32% 13.241 37,44%(info Ulg : 3669 EFT, ULB 3384 EFT)

Etudiants(2006-2007) Nbre 20.218 4.808 2.032 1.187 28.245 40% 68.239 41,39%(Ulg : 15745, ULB 20816 EFT)

Future size of the UCLOUVAIN

Is it an optimal size for an university??

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Birth of the UCLOUVAIN Process

Declaration of intention (2004)

Begin of the discussions at the level of rectors Poor efficiency Numerous disagreements (about the date of fusion)

Identification of the non negotiable items (2006) for each partner

Agreement by the 4 boards of governors Decision to merge (2007)

Dead line September 2010

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Basic documents : Vision, missions, values (Chart)

Activities involved in the fusion Education Research Student animation Regional positions Culture International relations

Birth of the UCLOUVAIN (2)

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Support fields Governance Informatics Human resources Finances Buildings and investments Communication

A leading comity : the strategic group An executive coordination comity

Several task forces

Birth of the UCLOUVAIN (3)

Acadmie Universitaire LouvainSchma directeur du rapprochement

Groupe stratgique - Document de synthse

02 octobre 2008

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Structural changes inside of the UCL Specific management for teaching and research

Faculties are replaced by schools and research institutes

Different phases Diagnosis

Internal and external if needed Vision and strategic keys

Swot analysis Definition of strategic keys Possible scenarios for the future

Strategies Objectives Initiatives

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Management of the process

Delayed by at least 2 years Still under the process of implementation New rectoral team proposed to postpone the

project How this internal structural change will persist in

the new UCLOUVAIN remains to be discussed

Agreement about what? but not about how?Difficult coordination between different plans

68

Examples from the field of medical education

External evaluation/accreditation largely under development

Projects in the international conference of French speaking deans : strategy for change Evaluation council Seminars about next steps after evaluation Seminars school of deans

Task forces about Professionalism and ethics Social accountability of medical schools

Do our physicians respond to the social demand?

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Examples from Academic hospitals

Sometimes larger than their mother university Much closer to an entrepreneurial approach

Real concern about market competition Major concerns about quality and continuing care Closer to corporate governance

Board assessment, mentoring and training, risk management

More frequent use of external consultants Much more prone to innovation

Team building, cockpit management, lean thinking, Six sigma,

Medical faculties depend on two different ministries:

Education and Health

70

Example of functional change increasing quality of processes :

lean thinking How to generate efficient fluxes in processes

Begin by the end (push approach) (if the in flux > out flux : problem)

Increase inter service cooperation

Standardize other formal procedures

Analyse cycles of processes (clusters)

Make the responsibilities of everyone more clear (no ambiguities)

Increase the respect for each individuals

= Objectives of LEAN 6 SIGMA= Objectives of LEAN 6 SIGMA

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Final comments and questions

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How to combine vision and realityVision

Quality of teaching, research and service is our most

important goal!

Reality

The only important figures are those related to money !

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Change is life Any change may pass through a feeling of loss La rsistance is related to the attachment to the past Resistance is normal, natural and even necessary Resistance will increase with pressure Pressure induce compliance, not adhesion Participation generates adhesion Anyone should find his own advantage in change Adhesion to change is in fact an individual choice

Keys for change

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Two ways looking at quality in higher education

Quality assurance : Does the entity respond to rules, good practices, standards (ISO)

Quality enhancement : how to build up progress from the actual situation of staff or entities?

Filippakou and Tapper, 2008

75

Part of the budget devoted to change policy? Place of the stakeholders?

Role of renewal of the authorities?

Quality of indicators : internal or external criteria?

How to regulate the top down and the bottom up Motivation (?) How to manage people against the project Level of autonomy (?) Level of change management (?)

76

Management of change

Which kind of power needed for change ?

Legal power Administrative power Financial power Academic power Moral power

And mainly Power at the service for the community

To be an authority in the university= is most probably an honour

= Is now a real job which needs specific skills

77

The implementation phase is critical (2/3 of projects fail during the implementation phase!)

Major role of the communication Should not be restricted to information

Universities are not only teaching institutions but are also learning communities

Learning by doing

How to animate the project?Lets share our positive and negative experiences

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The real challenge for a modern academic leaderis to be able to associate

Innovation and tradition, Excellence and accessibility Discipline and independence Entrepreneurial spirit and individual autonomy Leadership and management Man and tasks New technologies and inter personal relations

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Are we active for change ?

You must be the change you want implement

Start changing in yourself what you want to change in others

Gandhi

Thank you for your attention

Strategic management for change in higher educationSlide Number 2Why to change ? Contextual elementsWhy to change ? Internal elements Change is not an objective per seSlide Number 6Whats quality or success?Which criteria to define a successful universitySlide Number 9How to increase success in universitiesSome specific aspects of universities as social organizationsTwo extreme functional organization typesSlide Number 13How to manage changeSlide Number 15How is anyone concerned by change ? Slide Number 17What kind of changeConditions required to implement changes DefinitionSlide Number 21Phasing the change processSlide Number 23Key role of the leaders in change managementSlide Number 25Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 37Slide Number 38Slide Number 39Key role of communicationWhat do you see ? Why do people resist to change?Obstacles for change and progressRactions facing changeSlide Number 45Motivation process can be understood by both ways The ignorance icebergThe bottom upRelations between field actors and leaders Slide Number 49Slide Number 50Some examples fromBelgium and the literature Slide Number 52Mergers of universitiesWhat can be drawn for the English literature Mergers of universitiesWhat can be learned from previous experiencesExamples from China Mergers of universitiesRecommendation checklistAn experience from hospitals(focused on outcomes)The Begian exampleMerger of universitiesSlide Number 60Slide Number 61Birth of the UCLOUVAINSlide Number 63Slide Number 64Slide Number 65Slide Number 66Management of the processSlide Number 68Slide Number 69Example of functional changeincreasing quality of processes : lean thinkingSlide Number 71Slide Number 72Slide Number 73Slide Number 74Slide Number 75Slide Number 76Slide Number 77Slide Number 78Slide Number 79Are we active for change ?