1. POLICY RESPONSES TO CHANGING THE HE LANDSCAPE

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1 EUROPEAN COMMISSION DIRECTORATEGENERAL FOR EDUCATION AND CULTURE Higher education and international affairs Higher education: Modernisation Agenda; Erasmus KEY OUTCOMES Country Focus Workshop Changing the higher education landscape: specialisation, consolidation and territorial development" Riga, 34 April 2014 This note provides a concise summary of the key outcomes of the Country Focus Workshop (CFW) 1 on Changing the higher education landscape: specialisation, consolidation and territorial development hosted by the Latvian Ministry of Education and Science in Riga in April The CFW brought together representatives of ministries and HEIs from nine countries (Austria, Finland, Belgium (Flanders), Ireland, Latvia, Netherlands, Poland, Romania and Spain) as well as representatives of stakeholder of European Federation of Education Employers, Education International and the European University Association. A more detailed report on the workshop discussions and outcomes is also available. 1. POLICY RESPONSES TO CHANGING THE HE LANDSCAPE Based on the experience of the participating countries, the workshop set out to explore different approaches to systemlevel reform and the respective strengths and weaknesses of these approaches. The examples of policy frameworks discussed ranged from the national higher education reform programmes which explicitly involve mergers or consolidation to initiatives focused on specialisation, developing centres of excellence and other types of collaborative efforts. From an institutional perspective five institutions discussed their experiences of a merger process Higher education reform programmes with consolidation and mergers Three cases of national higher education reform programmes which feature consolidation and mergers as key components were discussed: 1. Finland has been engaged in a structural reform of higher education since 2005, with first wave of mergers in the university sector in The restructuring is underway in the polytechnic sector with the most recent merger in Currently, the Government is promoting deeper collaboration between the HEIs and state research institutes, while parts of state research institutes are being transferred to universities. The structural reform is complemented by bottomup collaborative efforts which cross the binary divide. 2. Ireland embarked on a HE Landscape Reform in 2012 involving several restructuring initiatives. Three Institutes of Technology in the Dublin area are 1 (CFWs) are seminars organised within the framework of the Open Method of Coordination for the Working Group on the Modernisation of Higher Education (WGMHE). They are hosted by interested countries and bring together ministry and HEI representatives from a maximum of ten countries to share experience and take forward the activities of ET2020 and the Higher Education Modernisation Agenda. 1

2 merging in order to be able to apply for the designation of the University of Technology (in 2014). There are also three large regional clusters of universities, Institutes of Technology and Colleges of Education to address the need for shared academic planning, reduction of duplication of provision and activities and need for improved pathways between educational institutions. 3. In Flanders (BE), Government has strengthened the quality and relevance of the binary system of HE through transferring longterm academically oriented BA/MA programmes from university colleges to universities ( ) and, leaving university colleges to focus on short cycle programmes leading to associate degrees. All institutions are also part of mandatory partnerships between universities, centres for adult education and university colleges Programmes to develop Centres of Excellence or institutional alliances Other country cases involved initiatives to promote interinstitutional collaboration (without necessarily involved mergers or consolidation), either to develop "Centres of Excellence" (in PL and ES) or to support synergies between institutions more generally: 1. The Polish Ministry of Science and Higher Education introduced a broad HE reform (2011) including the KNOW programme (implemented from 2012) to encourage the development of elite research centres through a competitive process. The KNOW is part of a broader twostage process of science and higher education reform to bring an element of permanent change in the financing of HEIs. 2. Spain s Campus of International Excellence was designed to address the key weaknesses of the Spanish higher education system including fragmentation and a lack of specialisation within the framework of Strategy University The strategic aggregation of HEIs and knowledge related organisations began in 2009 with the launch of the first round of the Campus of International Excellence. Currently, there are 32 CEI labels which involving 63 universities. 3. In Austria, the Federal Ministry of Science, Research and the Economy has led a mapping process for the HE system ("Hochschulplan"), a dialoguebased strategy process of public university coordination, which consists of the building development plan and a large scaleresearch infrastructure plan, the introduction of capacityoriented university funding and the Austrian Higher Education Conference. The implementation of reforms is carried out with the help of the 3year university performance agreements (est. 2004). The mapping process for the Austrian HE System and RTI strategy provides the strategic framework for the topics and targets. The performance agreements for focus, among other things, on intensification of cooperation and the development of distinct profiles and focus areas. 1.3 The institutional perspective: direct experience of mergers The five case studies of higher education institutions that have undergone/are undergoing mergers can be divided into mergers in response to governmentdriven HE system restructuring and more bottomup processes which are supported by the government to a varying degree: 2

3 Institutional merger processes triggered by government initiatives: Flanders (BE): Academically oriented programmes of two university colleges merged with the University of Antwerp in Ireland: Two institutes of technology are in the process of merging with the Dublin Institute of Technology which will eventually apply for the status of a of Dublin University of Technology. Institutional merger processes based on bottomup initiatives: Poland: West Pomeranian University of Technology was developed on the basis of a merger of The Agricultural Academy and the Polytechnic in Szczecin in Romania: The North University of Baia Mare merged with the Technical University of ClujNapoca in 2012/2013. The Netherlands: Amsterdam Academic Alliance and the planned (but currently suspended) merger of the faculties of the University of Amsterdam and Vrije Universiteit Amsterdam into Amsterdam Faculty of Sciences. 2. RECOMMENDATIONS The workshop discussions identified that Governments need to pay particular attention to a) determining the overall purpose of the reform: the vision for the future of HE; b) the operational capacity of the institutions responsible for carrying out the reform, including the technical expertise and institutional capability, and c) the political support by the leaders and institutions involved in implementing the reform. While recognising that Member States and individual institutions face different challenges depending on the institutional, local and national policy contexts, recommendations have been formulated on the basis of the workshop discussions and case studies. Recommendations for national policy makers: 1. Analyse the real options for HE system improvement and development, by carefully assessing different options, including alliances, mergers and/or specialisation, as well as their impacts and outcomes. Do not leap to the conclusion that mergers and consolidation are the correct policy response without a clear evidence base and reasoning and remember that "small can also be efficient". 2. Review the needs and preoccupations of major stakeholders and key interest groups including students, staff and external stakeholder groups who stand to "gain" or "lose" from the proposed reform. Such an approach makes it easier to identify and respond to "sticking points" in advance. 3. Engage in a wide consultation process concerning the need for, and content of, the planned changes in order to make all stakeholders and interest groups aware of the linkage between the proposed reforms and the likely improvements in the performance of institutions. In cases with strong opposition to system restructuring, prepare the basis for consensus through an external review or situational analysis from an international peer review team. 4. Where mergers are planned, undertake a rigorous assessment of the estimated costs, including management time and effort, infrastructure and staffing, opportunity costs. Follow the principles of due diligence. 3

4 5. Develop framework conditions to facilitate and support the system restructuring, paying careful attention to the legal framework. 6. Ensure broad interministerial support for the vision of HE reform and its objectives. This is important in all Member States, and particularly pressing in countries where the responsibility of HE is divided between different ministries. 7. Put in place adequate support and incentives for HE restructuring and consolidation for example through: i) specialist advice to institutional management ii) option for "status upgrade", iii) upfront funding incentives and iv) targeted funding contingent on evidence of success. When designing funding incentives, ensure criteria are kept simple. 8. Monitor and assess the outcomes of HE reform, by agreeing on the monitoring process with the institutions, for example by including the evaluation in the annual performance evaluations. Use flexible monitoring arrangements which take account of evolving needs of institutions and avoid monitoring solely against prereform targets. Recommendations for HEIs 1. If organisation change is considered necessary (resulting from internal or external factors), develop a shared compelling vision for the future, with which to argue in favour of the changes proposed. 2. Ensure leadership to drive the process. Set up a separate task group or project team and provide sufficient resources. 3. Engage in a broad consultation and engagement process. Consult student and staff who will be affected by the proposal. Prioritise students needs and interests. Provide support to individuals in change management. 4. Communicate sound objectives with focus on improvements in quality and student experience. Ensure that the main message is not about savings, but be open about upcoming cost savings. 5. Identify key personnel who support the change process and engage them as change agents. Allocate time and resources to allow the arguments for change to disseminate through different stakeholder groups and committees. 6. Develop a realistic and detailed time frame. Carefully consider the timing of any HEI reform, acknowledging that changes in the leadership e.g. through retirement provide an opportunity for profound changes. Prepare an implementation plan and monitor its delivery. 7. In the case of a merger, set up a working group of all parties to oversee the process. Prepare a financial and risk analysis. Make a realistic estimate of the capital and transition costs including opportunity costs. Dedicate adequate resources, focusing on the affordability. When rationalising education provision or services, investigate the possible benefits of alternative options such as collaboration focused on specific activities with possible relocation of activities between HEIs, clusters of related activities, or transfer or exchange activities between neighbouring or similar institutions. 8. Monitor the progress and evaluate the outcomes of the reform process at institutional level and report back to staff and other stakeholders in a transparent manner. 4

5 Table 1. HE systems and restructuring in nine countries GROUP 1 HE SYSTEM Policydriven restructuring and mergers New HEIs BE Flemish community 5 universities (3 public, 2 private) 17 university colleges(6 public, 11 private) 5 Private specialized HEIs Transfer of longterm academic programmes from university colleges to universities. The number of university colleges reduced from 30 to 17 and a further reduction to 13 is under planning. FI IE 14 public universities (2 public foundations) 24 polytechnics/universities of applied sciences (limited companies as of 2015) 33 public HEIs (7 universities, 14 institutes of technology, 11 colleges of education, 1 specialist art college) and private HEIs HE System Reform since 2005 with a string of mergers: In 2010, the University of Eastern Finland (universities of Kuopio and Joensuu), the University of Turku (merger with School of Economics), and Aalto University (Helsinki Uni technology, School of Economics, Uni of Arts and Design). In 2013, the University of Arts Helsinki (3 performing art institutions). Several mergers completed or ongoing in the polytechnic sector. Restructuring of state research centres with universities under way. HE Landscape Reform since 2012: ongoing mergers of Institutes of Technology: 4 groups of institute of technology alliances have been formed, including Dublin Institute of TechnologyIT TallaghtIT Blanchardstown. New institutes will apply for the status of universities of technology in 2014 GROUP 2 HE SYSTEM Topdown excellence initiatives New HEIs ES 82 universities (50 public, 32 private) Strategic excellencedriven aggregation of HEIs and knowledge organisations through the 12 new universities: 2 public, 20 private Campus of International Excellence (CEI) No mergers. PL 434 HEIs: 134 public (98 academic, 36 vocational) and 300 nonpublic HEIs The KNOW programme to build leading institutional or crossinstitutional research centres. Changes in the law to facilitate HE consolidation, but so far only one public sector Since 2004/05, 8 public HEIs and 88 nonpublic HEIs (77 in operation) merger: the West Pomeranian University of Technology (based on a merger of Szczecin HEIs: Agricultural Academy and Polytechnic in 2008). 10 mergers of nonpublic HEIs through absorption of one nonpublic institution by another. GROUP 3 HE SYSTEM Mergers facilitated by legislation New HEIs LV 34 Public HEIs (6 universities, 11 other HEIs, 17 public colleges) 24 private HEIs 25 College (17 public and 8 private) Several small HEIs have been incorporated into larger universities. 2 medical colleges were merged with the University of Latvia and 2 colleges with Riga Stradins University. The process of college integration into universities continues. Currently plans to integrate 3 more colleges into larger HEIs RO 92 accredited HEIs (55 state, 37 private) The Technical University of ClujNapoca (TUCN) absorbed the North University of Baia Mare in GROUP 4 HE SYSTEM Bottomup collaboration (NL) or topdown driven system expansion (AT) New HEIs NL 55 public HEIs: 18 universities (including 4 theological), 37 UAS; around 60 privately funded HEIs Most mergers took place from 1990 to A shift of focus in the 2000s towards small scale education which led to divisions. In recent years the government has encouraged bottomup cooperation. After the Merger Control Law 2011, only a few mergers of small HEIs AT 34 universities (22 public, 12 private) 21 Universities of Applied Sciences 17 University Colleges of Teacher Education (9 public, 8 private) No mergers. A governmentdriven mapping process of HE system to drive the HE reform and to provide the strategic framework for topics and targets. Performance agreements focus e.g. on interinstitutional collaboration New private HEIs, e.g. number of private collages increased from 4 to private HEIs initially accredited to operate temporarily have become part of the national HE system. In the , accreditation process, 186 study programmes were not approved, leading to 6 HEIs closing. 3 Medical Universities (2004), 3 new Universities of Applied Sciences and 12 private universities (since 2000) facilitated by legislation 5

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