'Super-universities' - the new wave of collaboration?
The recent announcement of the formation of a multi-university group by the universities of Kent and Greenwich is not just a hugely significant step for those institutions, it could be the start of a once-in-a-generation period of change for the sector.
The new 'super-university'
The sector has been eager for news since the announcement.
After signing their Memorandum of Understanding (MoU), Kent and Greenwich will be working through their merger due diligence, developing the strategy and plans for the combined entity and continuing to engage with their regulators and stakeholders.
The parties will need to address key questions relating the extent to which separate higher education institutions can be maintained within a single legal entity with one governing body, one academic board and one vice-chancellor. This includes implications on Teaching Excellence Framework (TEF) ratings, Research Excellence Framework (REF) outcomes, degree awarding powers (DAPs), data returns and other issues for multiple institutions operating within the same combined entity.
The sector is watching closely for clarity and guidance on these issues.
Lessons from the FE sector
The proposed 'multi-university group' structure is reminiscent of recent restructuring of the FE sector, when multiple colleges combined to form groups structured as single legal entities.
Like the proposed 'super-university', these FE College groups have a single governing body, single group CEO/principal and a single balance sheet.
Some FE colleges group retained the names and identities of the forming colleges, others created a unified brand.
The HE sector could draw valuable lessons from the FE sector about combining multiple institutions in this way - crucially, during those early stages when an institution is determining its medium and long-term strategy and exploring potential alliances to deliver that ambition. For mergers, key considerations include:
- Defining the merger strategy - What are the drivers and why pursue a merger over other alternative options?
- Identifying merger benefits - What will students, staff, stakeholders and your communities gain from this change? What other benefits to you hope to realise?
- Planning integration - How will you effectively integrate the institutions and deliver those benefits?
- Establishing governance and leadership - What will the governance arrangements and composition of the executive leadership of the merged entity be - both in the short and medium term?
- The future - Will you create a more resilient, stable and stronger organisation?
How to broker change?
FE colleges had the area review programme, FE commissioners and a financial support package to help drive that change. There are no equivalents in the HE sector currently.
While the OfS has said it welcomes the move by Kent and Greenwich and suggests more universities may explore similar options, there are at least two key outstanding questions for both the OfS and the Government.
- Should a framework/forum for universities to explore these options be created?
- Is there any scope for financial support to help reshape the sector?
We hope that the move by Kent and Greenwich will prompt answers to these questions (or at the very least, some serious debate about them).
Exploring all the options
For universities considering structural change and/or collaboration (whether to secure financial sustainability or otherwise to transform their institution), good governance dictates that they explore all relevant options.
For some institutions, neither closer collaboration with like-minded institutions nor joining (or forming) a multi-university group will be the answer. The strategic reshaping of a stand-alone institution could deliver long-term success.
Exploring innovative arrangements with private providers and the wider private sector could unlock new opportunities, drive structural change, create more financially resilient institutions and transform delivery.
Taking control of the future
The sector should not wait for changes in policy to drive structural change and closer collaboration.
Mergers and transformational collaborations can be challenging but, in our experience, it is not the absence of a legal model nor perceived challenges with a model, that stymies collaborations, mergers and structural change.
The universities of Kent and Greenwich can be commended for acting independently, decisively and taking control of their futures.
Each institution looking for change will need its own solutions. We shall see if the announcement from Kent and Greenwich encourages those institutions to find theirs.
How VWV can help
Our expert HE sector team can support universities and other institutions exploring strategic collaborations and mergers. Our experienced team can assist you with all aspects of potential collaborations and combinations, from governance, strategic options and structural models to due diligence, implementation and integration.