Making The Grade 2011 - A Study Of The Top 10 Issues Facing Higher Education Institutions

"Higher education funding sources, including government grants and international student fees, are shrinking in the UK. Rising tuition fees go hand in hand with increasing student demands and the as yet unforeseen impacts of higher education moving towards functioning as a market economy. At the same time, companies are demanding graduates with different skills in order to compete effectively on the global stage. To be successful in this new environment, higher education institutions will have to radically transform the way they do business. This publication highlights key issues facing higher education, which our research shows transcend national borders. Our aim is to work together as a global education practice to help create shared solutions and bring new insights to our clients."

Julie Mercer, Associate Partner and Head of Education, Deloitte United Kingdom

"For higher education institutions, success involves a large range of activities – from improving student outcomes and maintaining educational excellence to attracting the best faculty and planning for the future. Deteriorating financial conditions put all of these activities at risk."

Kathy Karich, Principal and U.S. Higher Education Lead, Deloitte United States

"Higher education institutions are in the midst of a perfect storm. Government funding is declining, market conditions have reduced the value of endowments, private backing is on the wane and costs are going up. Yet, these combined challenges create a unique opportunity for transformation. Educational institutions willing to think laterally can position themselves to outperform into the future."

Louise Upton, Principal and Canadian Higher Education Lead, Deloitte Canada

A transformation in education

In today's uncertain global economy, the continuing acknowledgment that education is critical to long-term economic prosperity seems to be the one constant. According to the Organization of Economic Co-operation and Development (OECD), "investments in education pay large and rising dividends for individuals, but also for economies," with "educational attainment linked to long-term social outcomes such as better health, political understanding and interpersonal trust."1 This holds particularly true for higher or tertiary education. Indeed, "the net public return is almost three times the cost of investing in tertiary education."2

All who have meditated on the art of governing mankind have been convinced that the fate of empires depends on the education of youth.

Aristotle

Despite the obvious economic benefits, however, spending on higher education is coming under increasing pressure these days. As nations around the world work to recover from the global financial crisis, they are tightening their budgets, leaving fewer funds available to the educational...