Transnational education delivery in a changing global landscape Scott Crighton 26 July 2012
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Transcript of Transnational education delivery in a changing global landscape Scott Crighton 26 July 2012
Transnational education delivery in a changing global
landscape
Scott Crighton26 July 2012
Outline
1. Key factors influencing TNE Regulatory environment Competitive environment Risks and reputation
2. What has the impact been on TNE provision?
Growth or consolidation? Managing responsibilities Business case development
3. Next steps what should providers do?
Transnational Educaiton (TNE) models
For the purposes of this discussion, two types of activities will be considered as TNE Offshore partnership programs International branch campus activities
Definitions
Partnership programs: Home institution accredited award
programs offered through a ‘local’ partner institution. No “bricks and mortar”
International branch campus: Home institution accredited award or
awards offered in another country, with the home institution having established a physical presence in the offshore location. (“bricks and mortar”)
Factors impacting on Australian transnational education
A range of factors are impacting on TNE. A few examples to be considered here are:Growth of regulatory agencies and changing Government policiesIncreasing levels of competition in traditional TNE marketsGrowing awareness of risk factors
Regulatory environment
Growth of regulatory agencies and frameworks in Australia (e.g. AUQA/TEQSA, ASQA,
AQF) in TNE markets (CPE; HKCAAVQ; MQA,
etc)
An increasingly competitive environment for TNE
Government initiatives in key markets Policy shifts in UK Higher Education –
leading to outward push Competition from cheaper models that are
difficult or impossible for Australian institutions (e.g. validation model)
The offshore campus phenomenon The persistently high Australian dollar
TNE Risk factors
There are many risks with running TNE activities, including: Financial
poor financial viability payment defaults Changes to market demand and consequent loss of
income collapse of programs/partnerships and meeting
teach-out requirements.
Legal contract non-compliance in-country regulatory requirements.
Risks
Quality Ensuring that what is delivered offshore meets the
same quality standards as what is delivered onshore
Balancing academic and financial considerations “Replicating” the student experience Language Meeting student support services offshore
These are particular challenges in partnership relationships where another institution has key academic and administrative responsibilities.
Risks
Reputation
Any offshore TNE provision represents an extension of the home campus. Any reputational damage offshore will therefore have reputational impacts on the whole institution and the sector.
Reputational impact can be significant if partnerships or campus locations collapse obligations to students are not met Program quality requirements are not met institution is misrepresented Partner is brought into disrepute Other in-country associations brought into disrepute.
Risks
There are recent examples of Higher Education institutions having their reputations severely damaged due to their offshore activities: University of Wales London School of Economics
Changes in TNE?
Have changes in the external environment, as well as growing institutional awareness of risks, led to changes in Australian TNE?
Changes in TNE?
A general trend is apparent among Australian TNE providers toward consolidation of partnerships and programs, but with student numbers nevertheless either growing or levelling out .
Singapore & Malaysia examples: declines in the number of Australian institutions
providing HE TNE over past decade numbers of enrolled students in Singapore increased
by 57.7% from 2002 to 2008 Numbers of students have increased 7.5% p.a. in
Malaysia since 2004/5 (See Banks, et al., June 2010; 54)
Changes in TNE? (International Branch campuses)
The trend among Australian providers toward fewer but larger TNE activities is also marked in international branch campus (IBC) activity.
Number of Australian IBCs has declined from 14 to 12 from 2009 to 2011
Australian IBCs account for only 6% of world total, but 52% of IBC enrolment numbers for the top 15 IBCs (25,600 of 49,180), or 21% of the estimated world total (25,600 of 120,000)
Source: OBHE IBC Report 2012
Australia vs the rest of the world:are the trends the same?
For other TNE provider countries there appears to be differing trends to Australia
For example, the number of IBC’s are showing significant growth internationally, e.g. number of UK IBC’s has nearly doubled from 2009 to 2011 (from 13 to 25)
A large number of IBC’s have very small student numbers: median student numbers in 2011 was 235 per campus
There are 78 US branch campuses, but understood to have relatively small numbers of students in most cases.
Source: OBHE IBC Report 2012
Trends related to consolidation of Australian TNE activities
Consolidation trends have led to the development of more complex institutional relationships
TNE activities span a greater number of academic and functional areas within both home and partner institutions.
Within this context, coordination and careful management of TNE activity has become far more critical.
TNE management and QA centralisation?
Survey of Australian institutions undertaking TNE have shown trends to management centralisation in:• New business development• Contract management and monitoring renewals
and exits• Enrolments and graduations• Financial tracking• Quality assurance and audits• High level communications • Marketing approvalsSource: Crighton and Nery 2010
Stakeholder management
Understanding needs and requirements Clearly defining internal roles and responsibilities –
helps ensure a more coordinated approach with partners
Coordinating communication Clearly defining, reviewing and monitoring
responsibilities of each party • Clear detailed legal agreements• Guides and manuals• Regular formal and informal communication • Monitoring tools and databases• single activity calendar, etc.
Business Case Development
Increasing understanding of importance of high levels of rigour in the assessment of new TNE opportunities:Strategic assessmentDetailed market analysis and assessment – inc. competitor analysis, demand assessment, impact of government policies, etc.Business model & associated roles and responsibilitiesPartner due diligence (legal, financial, facilities assessment, capacity assessment, ranking, relevant experience, etc.)Financial analysis – detailed costingRisk assessmentManagement structure
Management structures
TNE management – ensuring success
Important that central support areas are developed with • contracting experience• financial management and refined costing
frameworks• monitoring frameworks• refined partner management models• quality assurance expertise
Roles and responsibilities – properly defined and managed
Ongoing challenges
Meeting competitive challenges while maintaining quality and keeping risks under control
Finding & adopting innovative models Ensuring rigorous systems for assessment
and approval of business opportunities, balanced against importance of being nimble
Finding a good balance between centralised and decentralised management & obtaining stakeholder buy-in.
Preparing for the future: what should providers do?
Prepare for changes in existing markets - explore new markets & delivery models
Take all possible measures to ensure reputation is not damaged
Continue to strengthen business planning, management, monitoring and quality systems, and ensure appropriate levels of central coordination of these activities
Ensure clear exit and transition plans
Questions?