The University of
War wick in California?
2
Contents
1. Executive summary 05
2.
The opportunity 07
3.
The principles 09
4.
The vision 10
5.
The strategic and academic case 11
6.
Phasing timetables and gates 19
7. Higher Education environment: legislation, regulation and accreditation 22
8.
Competitive environment 27
9.
Operating models 29
10. Campus estate and infrastructure requirements and issues 30
11.
Employment requirements and issues 33
12. Financial appraisal 34
13.
Marketing, market research and branding 35
14.Governance 39
15. Due diligence 39
16.Risk 40
17.Conclusion 41
3
4
1.
Executive summary
This paper outlines the University of Warwick’s consideration to date of an opportunity to develop a
presence in California. This would be a significant undertaking for the University and considerable work
has been undertaken by academics and an operational and due diligence group with oversight and
direction from a sub-group of the University Council. There have also been several visits to California by
members of Senate and other senior leaders and managers of the University and reciprocal visits to the
University of Warwick by the sponsor body (University Development Trust) and key stakeholders from the
Placer County region in California.
This consideration is based on several premises and principles:
• It is underpinned by a set of principles adopted by the University Council to guide the development
of both the academic proposition and business plan for consideration by Senate/Council.
•
It adopts a phased approach to development to support and ensure careful consideration at each
stage of development. Phase 0 would be a period of awareness raising, profile building and
preparation; during Phase 1 a small number of postgraduate courses would be offered in interim
accommodation whilst continuing to build the brand of the University and prepare for the new
campus; and, in Phase 2 undergraduate students would be admitted on a rolling programme basis
across a wider spectrum of subjects.
•
This phased approach would incorporate ‘gates’ at strategically important stages of development.
These gates would give both parties (the sponsor and the University of Warwick) an opportunity
to reflect and make an informed decision to proceed or not to the next phase. This would be a long
term, complex project and having clear targeted dates and criteria against which progress can be
monitored and reported on would be fundamental to driving its success and to giving reassurance to
all stakeholders that the ambition can be realised in the way that it was planned.
Key to any case being made to develop a presence in California is the strategic and academic case. As a
research-led university, the University of Warwick essentially has three key strategic aims and the case
is premised on consideration of these: research excellence in terms of research outputs, impact and
income; teaching excellence in terms of the quality of students recruited, student experience and student
outcomes; increasing global reach and reputation.
The paper identifies the potential benefits, opportunities, challenges and risks to the University of
Warwick should it proceed.
The US higher education system is mature, complex and highly devolved. It has many similarities and
differences with the UK higher education system. This paper considers the US system and its inherent
regulatory, accreditation and approval mechanisms and provides a summary of the roadmap that would
be followed to achieve these requirements for the University of Warwick in California. There is also an
appraisal of the competitive environment in US higher education.
Other sections of the paper describe possible operating models and guidelines and the physical campus
potential offered by the opportunity. Staffing and related issues are also considered including a potential
employment model and opportunities for existing Warwick employees and employment of new staff in
the US.
A financial model has been developed. At this stage this focuses on what would be the early stages of the
project. It is inevitably based on a set of assumptions driven by our current understanding of operating
and development costs and potential income streams. Further work would need to be undertaken to
validate the assumptions and extend this model to a stage that would reflect a programme of research
and teaching on a newly constructed campus. Also, surety and availability of required cash flow from
UDT to fund phases 0 and 1 (as set out in the financial model) would need to be secured as part of any
agreement between UDT and the University of Warwick.
5
Market research has been undertaken which focused on the market opportunities and the opinions
of prospective students. Some of this was funded by the sponsor. The University of Warwick also
commissioned independent market research. This is summarised in the report and appendices. A
marketing campaign would need to be initiated during the early stages of development to raise the
University’s profile and support more detailed market research to inform the phasing of subject offerings.
This would be essential in entering the higher education market in the US.
Due diligence has been undertaken through desk research by the project team and meetings in the
US with academics and university administrators. Additionally, a law firm based in California, which
is independent of UDT, was commissioned by the University of Warwick to conduct initial legal due
diligence. They were asked to focus on property due diligence, background investigation of the principals,
corporate due diligence and to review the licensing and accreditation requirements.
If the University of Warwick chooses to proceed with this proposition, next steps would need to be
initiated as soon as practicable. It is suggested that a number of workstreams would need to be
established. Six working groups, each with its own workstream, reporting to a Steering Group chaired by
the Provost would cover: Research & Teaching, Medicine, Legal & Financial Structures, Campus Plan, Staff
Engagement at Warwick, Delivery Team in California. Members of Senate would be invited to be on these
working groups.
This paper is supported by a set of appendices that provide more detail on some of the issues explored
in the main text.
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2.
The opportunity
A significant opportunity has arisen for the University of Warwick to create a new University presence in
California. A donation of land in California from private donors and funding would be made available for
the development of University operations and the initial construction of a new presence on this site.
This would help to accelerate the University of Warwick’s ambition to be a global university. Further, it
would create a new University, connected to the University of Warwick in the UK, from which would flow
increased research income, innovative teaching and learning, enhanced student experience. This may
acceptably dissipate over time as the University of Warwick in California brand becomes established and
operations and strategy are managed locally: somewhat akin to a family growing up.
2.1
The sponsor
The University Development Trust (UDT) is a District of Columbia non-profit, 501(c)(3)1 organisation with
a high-level mission focused on educating and informing the American public. It has operated for 13 years
in the fields of non-profit journalism, education, think-tank involvement and institutional scholarship.
Currently, its marquee project is its effort in Placer County, California to develop and start operations of a
world-class university on 600 of the 1,159 acres it received as a donation in December 2012 from Angelo K.
and Sofia Tsakopoulos, William and Claudia Cummings and the Wayne L. Prim Family.
2.2
The location
California is the largest state economy in the US, equivalent to the 8th largest national economy in the
world. It leads the nation in innovation and progressive policies in energy, communication and culture
and is the largest and wealthiest consumer market in the US.
The Greater Sacramento Region has a population of approximately 2.2 million. It benefits from its central
location in Western US, convergence of three national highway systems, an international and cargo
airport, a sea port in West Sacramento and a strong rail network and hub. Companies that locate in the
region, especially technology-based companies, often encourage similar companies, customers and
suppliers to make the move to the Sacramento Region. It is in one of the most desirable locations in the
United States and in California and offers a cost of housing that is nearly half that of the coastal regions
(including San Francisco and Silicon Valley), and costs of business at 25% to 40% less. The lower cost of
living acts as an incentive in the recruitment of talent from around the world. The region boasts higher
than California average educational attainment, SAT scores and the percentage of high school graduates
entering public universities.
Sacramento is the state capital of California with all agency headquarters, legislature and the Governor’s
Office. It is the primary location for policy development, particularly important for industries that have
public/private dynamics. US public policy frequently starts in California and often becomes federal policy.
There are 35,000 businesses in Sacramento. It hosts Hewlett Packard and Oracle Corporation and
high technology industry clusters in software development, biotechnology, hardware, medical device
manufacturers and system integration. (See Appendix A for further details.)
1. Exempt Purposes - Internal Revenue Code Section 501(c)(3)
The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or
international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and
includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining
public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination;
defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
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San Francisco and Sacramento
Placer County is one of California’s fastest growing counties and encompasses 1,506 square miles
or 964,140 acres and is located 80 miles northeast of San Francisco, California. There are 360,000
inhabitants. Roseville, the largest city in Placer County, is about 20 miles from Sacramento.
Sacramento and Roseville
The donation of land to UDT encompasses 1159 acres which is split between a site of around 600 acres for
the University campus and adjacent community development land of around 560 acres (residential and
supporting land use) as shown below:
Figure 1: Campus and adjacent community development land
UDT aspires to sell the community land and donate cash from the proceeds (with additional fundraising)
to fund the construction and the operations of the University.
8
3.
The principles
The University Council established a sub-group to steer consideration of this proposal and agreed specific
principles in the form of conditions that should drive any such consideration and form the basis of any
subsequent formal agreement. The overarching principle is the first element of the vision in section 4:
“The University of Warwick in California would deliver teaching and ultimately research
of the highest quality, further extending and accelerating the University of Warwick’s
global reach and reputation.”
The group agreed that the principles and conditions for engagement and any subsequent formal
agreement would be as follows, and that these would underpin the development of both the academic
proposition and business plan for consideration by Senate and Council:
1. Any development to be at UDT’s own cost, not funded through the allocation of resource from within
the University’s existing budgetary envelope except for limited resourcing of the exploratory stage;
2. The quality of any University of Warwick activities in California must be at least at an equivalent level
to the quality of its provision in the UK;
3. The business plan to include appropriate gateway points at which the University, through its Senate
and Council, would formally resolve either to continue or terminate its engagement in California
depending on the outcomes of each phase of development;
4. The outcome of University of Warwick engagement in California should be to extend the University’s
global reputation;
5. Any University of Warwick activity in California to be branded with University of Warwick name;
6. The University reserves the right to approve/disapprove the involvement of any other HE or corporate
partners in the development of the University project in California;
7. In its own considerations on engagement, the University makes an objective assessment of the
capability and capacity requirements and the specific impact on the Academy and senior staff during
Phase 0 and Phase 1.
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4.
The vision
The University of Warwick in California would deliver teaching and ultimately research of the highest
quality further extending and accelerating the University of Warwick’s global reach and reputation.
The University of Warwick in California would be driven by the same values and adopt and promote
the same standards and expectations as the University in the UK. It would create an inspirational and
innovative place in which to learn and grow, developing a literal green field:
From this...
To this…
Through the development of a California campus, the University of Warwick would become, over the
following 25 years, a global university, capable of competing and collaborating with the world’s greatest
institutions in research and teaching. As in the development planning for the Warwick campus in the UK,
a long-term commitment to quality and impact is at the heart of the proposal.
The University of Warwick competes strongly in the UK – the Research Excellence Framework (REF)
2014 results demonstrate this. But there is a gap to the ‘Big Four’ universities of Oxford, Cambridge,
Imperial and UCL. Expanding capacity, global reach and connections over the next 25 years would give the
University of Warwick a chance to close this gap. In this, California with three ‘Top 10’ world universities,
six in the top 50, is an ideal site.
The University of Warwick in California would be a private, not-for-profit, research-led institution offering
the highest quality of teaching and research to students and staff from California, the United States and
other regions and countries of the world. The student experience would be international.
It would be competing and co-operating with some of the best universities in the US, graduate
schools, liberal arts colleges and globally recognised brand names of the University of California system
and beyond. It would offer UK degrees, accredited through the WASC Senior College and University
Commission that is regarded as the ‘gold standard’ of accreditation in California.
The aim would be to grow the University of Warwick in California through phases of development:
Phase 0 (potentially 2015 – 2017) awareness raising, profile building and preparation; Phase 1 (potentially
2017 – 2021) a small number of postgraduate courses would be offered in interim accommodation in
Roseville whilst continuing to build the brand of the University and prepare for the new campus; Phase 2
(potentially from 2021) – undergraduate students would be admitted on a rolling programme basis across
a wide spectrum of subjects. The possible timelines are described in more detail in 6.1 with caveats around
the start of Phase 2.
Research would be initiated at the very outset through collaboration at institutional and individual
researcher levels. After ten years of operation on the new campus the University of Warwick in California
would have approximately 6,000 students of whom 1,500 would be postgraduates.
The University of Warwick in California would develop and refine innovative ideas and approaches and
bring them to the University in the UK.
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5.
The strategic and academic case
5.1
Benefits: why should Warwick take this opportunity?
As a research-intensive university, Warwick can be said to have three key strategic aims:
1. Research excellence in terms of research outputs, impact and income
2. Teaching excellence in terms of the quality of students recruited, student experience and student outcomes
3. Increasing global reach and reputation
A California campus could extend Warwick’s global footprint into the world’s leading higher education
economy and enable all three of these strategic aims to be accelerated. The vision would be one of
mutuality: all activities in California would be developed alongside and in full sight of the development
of the University of Warwick in the UK, allowing opportunities for mutual enhancement and/or
development in both locations to be exploited fully where it makes sense to do so. By 2035, Warwick’s
two campuses would interact to maximise research and teaching excellence, enhancing the University’s
global reputation and realising its ambition of targeted growth. The potential to accelerate each of these
three strategic aims is explored in more detail below, but in short:
The University of Warwick’s research outputs would be enhanced through collaborations with the worldclass institutions of California, such as UC Berkeley, UC Davis, Stanford, UCLA and CalTech. Co-location
would increase research income through proximity to US foundations as well as the ability to recruit high
quality US-based staff. Impact could be maximised through forging new industrial partnerships with
the IT companies of Silicon Valley and San Francisco; the agritech industries of the Central Valley around
Sacramento; and the healthcare companies of the region, such as Kaiser Permanente and Sutter Health.
As for teaching excellence, the University of Warwick in California would be positioned to develop new
means of teaching through learning from innovative US experiences as well as the opportunities that
emerge from building a new, hi-tech campus (built in a way which would exploit technology to the
extent that the budget enabled it to do). It could be a test-bed for innovative practice that could then be
shared with the University of Warwick in the UK. The University of Warwick’s reputation would be further
enhanced by the high quality of students from within California as well as the creative and talented
individuals attracted from around the globe by the quality of education in California. This in turn could
open up new markets around the Pacific Rim for the University of Warwick, which, rather than divert
recruitment from the UK campus, would increase international student numbers and diversity on both
campuses. A distinctive student experience in California could be created by embedding new means of
student representation and engagement in the US system, as in the University of Warwick in the UK.
In terms of global reach and reputation, a California campus would provide a platform for UK-based
staff and organisations to engage with public, private and third sectors in California and the wider US.
Furthermore, developing a new innovative model of global higher education based on the two connected
campuses on different continents would secure the University of Warwick’s position as a truly world-class
global university.
California is a market with scope. There is a deficit2 of university places for well-qualified prospective
students meaning a University of Warwick presence there could attract an extremely bright and talented
cohort of students who would otherwise need to go out of state (this is one of UDT’s principal drivers).
The creation of a new University of Warwick student body in California would provide study abroad
opportunities flowing in both directions, increasing diversity on our UK campus and providing much
needed US student exchange places and an international experience for the California-based cohort.
2. See this link for details of acceptance and enrolment rates at UC universities:
https://secure.californiacolleges.edu/College_Planning/Explore_Schools/Enrollment_Rates/UC_Enrollment_Rates.aspx
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5.1.1
Enhance research excellence
Global research excellence is increasingly being focused in a small number of geographical locations,
where a confluence of research excellence and, often, public and private finance is driving forward
academic research achievements. Arguably, the greater Boston area, the greater London area (with
connections to Oxford and Cambridge comprising the ‘golden triangle’) and California represent the three
leading global academic centres of excellence. Eight out of the top ten institutions in the Times Higher
Education 2014/15 World University Rankings are located in one of these three centres:
1. The greater Boston area: Harvard (2); MIT (6)
2. The greater London area: Oxford (3); Cambridge (5); Imperial (9)
3. California: CalTech (1); Stanford (4); UC Berkeley (8)
Operating in California would provide opportunities for research collaboration leading to greater
momentum if the University of Warwick were able to manage the collaborate/compete relationship
with the existing world-class institutions there. The opportunity exists for the University of Warwick
in California to be established with greater visibility and with funded infrastructure that would not
be possible elsewhere. If the University of Warwick were to have a base in California it would need to
be configured for research from the very beginning, as only then would it provide an opportunity to
collaborate as well as compete and reap the benefits of being embedded in one of these global academic
centres of excellence.
Co-location is particularly important for STEM subjects. Taking the Cambridge High Technology Cluster
as an example, a recent report has shown that key components of the cluster are the presence of worldclass research, strong companies and visionary entrepreneurs linked by intangible social networks
at local, regional and international levels3. The Cambridge Cluster has been particularly successful in
creating coherence through how it has organised itself. Physical proximity and the relative ease that this
provides for information exchange and building relationships through face-to-face meetings has been
seen as a key factor. The Mayor of London’s vision to complete a ‘golden triangle’ with Cambridge and
Oxford by creating a new life sciences cluster in the capital (‘MedCity’) that brings scientists, companies
and investors together can be seen as further evidence of the perceived value of co-location in clusters4.
The University of Warwick’s 2014 strategy ‘Looking Forward’ talks about growth in science, medicine
and engineering, and, over time, a location in California which is research oriented and which connects
in multiple ways to the clusters of research universities in the region, offers precisely that outcome to
the University of Warwick. This is not to the exclusion of arts and social sciences; it is simply that the
multiplier effect is greater for science, engineering and medicine.
The University of Warwick could bring real strengths to that research environment. First, the University
has genuinely world-class subjects. As the REF results have just shown, 87% of Warwick research is
classed as ‘world-leading’ or ‘internationally excellent’ and seven departments are in the UK top five and
fourteen in the UK top ten. Given that the REF is benchmarked against international standards, the
University of Warwick’s strong performance in 2014 clearly translates to a measure of global excellence.
The University’s experience of delivering a science park, successes in engaging deeply with industry and
the wider community (for example, through WMG and the Science City Research Alliance) are ways of
engaging research which is uncommon in California’s elite research institutions. This is an additional
benefit that Warwick could bring to the mix of research collaboration in the region.
3. Cambridge Cluster at 50: Final Report to EEDA (March 2011)
4. London to complete ‘golden triangle’ of UK bioscience, Daily Telegraph, 5 April 2014
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Academic research has shown that papers written with international co-authors are more highly cited
than those written with national co-authors or even single authors. Researcher-to-researcher links
already exist between Warwick and a range of Californian institutions including the major universities
in the North California area: Stanford, UC Berkeley, UC Davis and UC San Francisco. The number of coauthored publications with these and other selected Californian institutions can be seen in Figure 2 below.
Number of co-authored
publications with Warwick
Number of co-authors
at Warwick
Stanford
289
99
UC Irvine
284
99
UC Berkeley
241
99
UC Santa Cruz
266
75
UC San Diego
36
48
California Institute of Technology
171
45
UC Davis
23
45
UC Los Angeles
49
44
UC Santa Barbara
113
27
UC Riverside
106
20
UC San Francisco
9
11
UC Merced
0
0
Californian institution
Source: SciVal © 2014 Elsevier B.V. All rights reserved.
Figure 2: Co-authored publications between University of Warwick and selected Californian
institutions (2011-14)
A California presence would provide a platform to build upon these links and develop institutional-level
research collaborations in areas of strength that would link to Warwick’s Global Research Priorities.
Figure 3: Warwick Global Research Priorities
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In terms of geographical location, UC Davis is the nearest UC system campus to the proposed university
site in Roseville. Senior leaders at UC Davis have confirmed that they would welcome the co-location of
a well-established UK research-led university in North California, as this would enhance the quality of
their own research, including funding bids. The University of Warwick’s strong track record in universityindustry collaboration has also been cited by university leaders in California as being attractive to local
institutions and industry. University of Warwick researchers are already collaborating with a number
of Silicon Valley companies and this experience could help the University to develop further tripartite
collaborations with Californian universities and companies in Silicon Valley and the Sacramento area
in areas related to our Global Research Priorities. These existing collaborations, both for academic
researchers and with Silicon Valley organisations, could support early promotion and PR work. Further
work would need to be done to validate these relationships.
5.1.2
Innovative teaching
A California presence would allow the University of Warwick to experiment with and develop innovative
teaching and degree programmes in order to provide an outstanding global learning experience for our
students. This could include peer-to-peer teaching and the ‘flipped classroom’. Key, though, is that a
campus in California could provide a smaller landscape to pilot new and emerging models before then
seeking to translate them into the University of Warwick in the UK.
This could also include new subject areas for the University of Warwick, such as global sustainable
development, that link directly to California as a location. California has a global reputation for being a
‘green state’ because it faces real and pressing sustainability problems. This presents the University of
Warwick with an opportunity, driven by a very real need, for innovative teaching by bringing a European
perspective and approach to sustainability into a geographical location surrounded by high-tech
industries and world-class universities. An undergraduate degree in Global Sustainable Development
taught in collaboration with industrial partners, local government and UC Davis would create a new
market for the University of Warwick in California and would also allow the University of Warwick to send
students enrolled at the University in the UK to the University of Warwick in California and vice versa. It
might provide a hub for students wishing to experience degrees underpinned by the US and European
models.
In addition to innovative programmes, the University of Warwick in the UK could bring a range of
teaching models to the University of Warwick in California that would be distinctive and attractive to
potential students. The University has invested greatly in interdisciplinary teaching and this, along with
our approach to problem-based learning, which is gradually being implemented in the Arts and Social
Sciences, would be highly transferable to the US context. Another strength the University of Warwick
could bring to California that would be truly distinctive is a teaching model that exploits advanced
knowledge of Shakespeare in performance (in business, economics, theatre and performance, and
leadership). Market research undertaken by i-graduate (see para 13.2.7) has indicated a high level of
interest in online delivery amongst prospective students for the University of Warwick in California
pointing to the potential for blended learning. The University of Warwick is already developing blended
learning approaches to engage student cohorts in different locations in a rich shared learning experience.
Through a truly international extended classroom, US-based students would be learning alongside
staff and students from the University of Warwick in the UK, providing cross-national social learning
opportunities. Working in virtual teams, learning through digital platforms and creating rich social
networks are all key skills for tomorrow’s graduates. This approach to blended learning would therefore
provide a strategic fit with the University’s commitment to produce highly employable graduates who are
fully equipped to succeed, whatever sector they choose to enter.
5.1.3
Global reputation
Engaging with leading California-based institutions could lead to the development of collaborative
research and teaching partnerships of mutual benefit that could accelerate the rate of development
for the University of Warwick. The University of Warwick would be positioned to grow its reputation
worldwide as a global university that does things differently. In the increasingly competitive global higher
education environment, international visibility is a key component in attracting the best students and
academic staff.
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Clearly this is a challenging ambition, but one that would significantly raise the University of Warwick’s
profile and accelerate its global reputation as a leader in innovation and academic excellence on a
trajectory that would not be achievable through the UK campus alone. As one of two connected
campuses, California could have a transformative effect on the UK campus and global brand, making the
University of Warwick a more prestigious institution and sought after destination for the world’s best
students and staff.
Given global trends in student mobility, the University of Warwick in California could be attractive to
students from many parts of the world e.g. East Asia.
5.1.4
Why California?
The University of Warwick already collaborates with partner institutions around the globe with varying
degrees of commitment and engagement ranging from student exchange agreements to the Alliance
with Monash University in Australia.
Figure 4: Warwick’s global presence (Yellow – Teaching Centres; Green – Offices; Blue – Study
Abroad; Red – Partnership Links; Pink – WMG Teaching Centres)
A California presence would extend the University of Warwick’s global reach more significantly than any of
its existing institutional level, international collaborations. As well as providing access to the Pacific Rim
economies, California would be a highly strategic location for a University of Warwick presence. In 2013,
California was the world’s 8th largest economy with a gross state product of $2.2 trillion. It is the US’ most
populous state (38m) and has three universities in the top 10 of the THE World University Rankings 2014-15 and
eight in the top 100. Both Stanford and UC Berkeley produce a surplus of high quality post-docs, meaning a
new institution in North California demonstrating a track record in research excellence would be in a position
to attract some high calibre academic hires from these as well as other leading Californian institutions.
The chart overleaf shows the field-weighted citation impact against scholarly output (articles only) for
University of Warwick compared with some of the leading Californian institutions. The bubble size shows
the percentage of publications each institution has in the top 1% of world journals.
15
2.80
2.60
2.40
Field-Weighted Citation Impact
2.20
2.00
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Scholarly Output
Institutions
California Institute of Technology
Stanford University
University of California at Berkeley
University of California at Davis
University of California at Los Angeles
University of California at San Francisco
University of Warwick
Figure 5: Field-weighted citation impact against scholarly output
All of these Californian institutions outperform the University of Warwick on the number of publications.
Whilst most are higher on the field-weighted citation impact (which normalises by subject), it is
interesting to note that UC Davis and the University of Warwick are roughly comparable on this measure
even though UC Davis figures more prominently in world league tables. Meetings between senior
representatives of UC Davis and Warwick in 2014 have confirmed both the potential and appetite for
collaboration between the two institutions.
5.1.5
Why Placer County?
Whilst California already hosts a large number of high quality universities, there is a gap for a new worldclass, research-led institution to be established in the inland region of North California close to the state
capital, Sacramento. Located 35 miles south-west of the proposed university site, UC Davis would provide
competition, but also significant opportunities for collaboration. Senior leaders at UC Davis have stated
they would be open to a new world-class institution setting up in the Sacramento region that they can
collaborate with, particularly in areas that they would like to strengthen, such as internationalisation
and industrial engagement. Internationalisation is a strength of the University of Warwick. The University
also has pockets of excellence in industrial engagement, such as Warwick Manufacturing Group. With
limited scope or funding the University of Warwick has not broadened its reach in such engagements.
Science City extended the number of departments where it was possible and there was relatively little
revenue in that apart from academic posts and some business development managers. Opportunities for
industrial engagement in California could provide an additional landscape for the University of Warwick.
In return, UC Davis has strengths it could offer the University of Warwick. One example is medicine where
it could provide access to healthcare companies for research funding and high quality hospitals for clinical
trials. The University of Warwick would need to undertake further consideration of the regulatory aspects
of this potential opportunity.
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University of California, Davis ~40 minutes
Site of potential campus
University of California, UC
Berkeley
~1 hour, 40 minutes
University of California,
San Francisco
~2 hours
Stanford University
~2 hours, 30 minutes
Pharmaceutical companies
with sites located in
Sacramento: Merck, GSK,
Novartis, Pfizer…
Lawrence Berkeley
National Laboratory
~1 hour, 50 minutes
Lawrence Livermore
National Laboratory
~1 hour, 50 minutes
Silicon Valley
~2 hours, 30 minutes
Source: Google Maps
Figure 6: Proposed campus site (Placer County) in relation to other North California institutions
The rationale for UDT choosing the proposed site near Roseville in Placer County is that there is space and
planning permission available to build a new campus.
The new campus has strong local political support and the donors are connected at the highest political
level. In terms of student recruitment, there is growing demand for university places in Placer County and
there is very little local competition to meet this growing demand. The demographics, business climate,
infrastructure and quality of life are all favourable for a new institution to succeed:
•
Demographics: Placer County’s population is projected to increase by around 63,000 people to
approximately 420,000 residents by 2023. Overall, the County is projected to see growth of about 18%
between 2013 and 2023, which is a higher rate than the Sacramento Region’s, Bay Area’s, and
California’s respective projected growth of 11%, 7%, and 10%. The Sacramento Area Council of
Governments’ Blueprint projects that by 2050 the population of the Sacramento Region will
increase to 3,817,000 with Placer County as its second most populous county (642,000 inhabitants).
This represents growth of 1.7 million people and 1 million new jobs between 2000 and 2050 for the
Sacramento Region.
•
Education: Placer County benefits from high educational attainment at the postsecondary level. In
2011, 49.2% of Placer County high school graduates completed the entrance courses required for the
UC and California State University (CSU) systems compared with 36.9% for California as a whole and 46.5% for the Bay Area.
•
Business Climate: Placer County is specialised in six sectors: Construction, Financial Activities, Leisure & Hospitality, Educational & Health Services, Trade, Transportation and Utilities, and Other Services.
In 2011 there were 10,700 businesses in Placer County, with 35,000 businesses in the wider
Sacramento Region.
• Infrastructure: Interstate freeways, transcontinental railways, a deep-water shipping channel and
two major international airports give Placer County easy access to many major markets.
• Quality of Life: Placer County’s climate, geography and historical richness contribute to its high quality of life.
17
5.1.6
Why Warwick?
The University Development Trust’s vision is to build the first private university of significance in California
in 100 years. It aims to establish it in a way that would enable it become a major university in the long term.
In order to achieve this vision they have identified Warwick as a strong strategic fit against all of their core
criteria:
• A world-class university with a global reputation
• A young university that has a demonstrable track record of growing something substantial and
successful from nothing in a relatively short timeframe
• A campus university with experience of successfully operating on greenbelt land just outside an
urban area
• A university with a track record in delivering international education
• A university with expertise in technology transfer and the commercialisation of research
• A university with a strong track record in university-industry collaboration
5.2
Strategic fit: how will this opportunity align and contribute towards the University’s strategy?
The University’s vision is to be a world-class university. It will take a dynamic, enterprising approach to
solving global challenges, enable students to create their place in the world and define the university of
tomorrow. The California opportunity would need to align with this vision and contribute to each of its six
strategic goals. Appendix B is a table articulating the strategic fit with the University Strategy’s six goals.
18
6.
Phasing timetables and gates
6.1
Phases
The aim would be to grow the University of Warwick in California through phases of development.
Research would be initiated at the very outset through collaboration at institutional and individual
researcher levels as outlined previously.
• Phase 0 – awareness raising, profile building and preparation
• Phase 1 – a small number of post-graduate courses would be offered in interim accommodation in
Roseville whilst continuing to build the brand of the University and prepare for the new campus
• Phase 2 – undergraduate students would be admitted on a rolling programme basis across a wide
spectrum of subjects.
The following description of phases sets out some of the activities that would need to be undertaken
at each phase. The dates of the possible periods are for modelling purposes. They would be influenced
by a number of complex factors including land approvals and regulatory, approval and accreditation
processes. The 2021 date with an arrow in the table below could be any time between 2021 and 2024
dependent on these factors, which would become clear after the first few years of development.
Phase
Possible period
Activities
0
1
2
2014/15 – 2015/16
2016/17 – 2020/21
2021/22
• Warwick set up team in California
• Refine proposals with UDT
• Warwick awareness raising campaign
• Further financial modeling and
due diligence
• Work alongside UDT on fund
raising
• Visiting speaker programme
• Summer schools
• Relationship development with
UC Davis and other Californian
universities and institutions
• Awareness programme with visits by key stakeholders in
both directions
• Interim accommodation
arrangements made
• Initiate accreditation/approval
applications
• Support UDT with campus
planning
• Prepare contractual heads of
terms agreement
• Prepare for first PGT/CPD courses
• Continue awareness raising
campaign
• Transition to new campus and
implement operational model
• Move to interim accommodation
with teaching facilities
• Implement new structure
• Support UDT with fundraising
and campus development
• Rolling programme of new
courses aiming to UG
population of c.4500 and PGT
of c.900 with PGR of c.600 by
Y10 of campus operation
• Prepare for, recruit to and
deliver first PGT and CPD courses
• Continue approval process and
initiate accreditation mechanisms
• Develop final proposals
and obtain approvals for and
commence construction of
new campus
• Prepare for and recruit to first
UG courses
• Recruit and develop staff
(academic leaders, flying
faculty, PGRs, postdocs and
growing US base)
• First cohort UG admitted
• Recruit and develop staff
• Develop campus in line with
development plan
• Develop research portfolios
and income (private and public
funding)
• Establish shared facilities and
services with UC Davis and
other Californian universities
• Develop and implement final
structure and operational model
• Further develop relationships
with and explore shared facilities
/services with UC Davis and
other Californian universities
Figure 7: Possible phases of development
19
6.2
Gates
At the conclusion of each of these phases a ‘gate’ process would be undertaken. These ‘gates’ would
constitute a consideration of the key issues and risks at that time and determine the level of confidence
both the University of Warwick and the University Development Trust had in progressing to the next
phase of development (including, as shown in the gates below, a review of cash available for the next
phase).
A transparent report monitoring progress and status against the strategic objectives would be submitted
to Senate and Council for formal consideration at each gateway.
Whilst these gates would be partially dynamic and ‘of their time’, there are some factors that would
need to feature at every gate. Progress would be reviewed continuously but the gates would be formal
moments of evaluation. Any additions or changes to the criteria would be mutually agreed between the
University of Warwick and the University Development Trust and reported to Senate and Council.
The criteria shown in the gates below would need to be developed into sharp, clear and measurable
outcomes and key performance indicators as elements of any formal agreement between UDT and the
University of Warwick.
The proposed dates of gates would be dependent on the dates of actual phases. As described in para 5.1,
these are dependent on a number of factors and could move. The dates below, therefore, are indicative.
Phase 0
Phase 1
Phase 2
Gate 0
Summer 2016
Gate 1
Autumn 2018
Gate 2
2020
• Sufficient sponsorship, cash and
capital in place to proceed to Phase 1
• Sufficient sponsorship, cash and
capital in place to proceed to Phase 2
• Sufficient sponsorship, cash and
capital in place to proceed to next gate
• Market research demonstrates potential
demand for proposed academic activities
• $Xm endowment available
• $Xm endowment available
• PGT successful with high level of
student satisfaction
• Market research demonstrates
potential demand for proposed
academic activities
• Awareness raising campaign successful
• Viable route for accreditation and
approvals identified
• Political environment acceptable
• Land approvals in place
• Interim accommodation
arrangements made and acceptable
• Contractual heads of terms agreed
• UoW’s leadership capacity not
disproportionately impacted
• UoW’s reputation enhanced
• Market research demonstrates
potential demand for proposed
academic activities
• New model and structure and
underpinning contract in place
• Accreditation and approvals on plan
• Political and competitive environment
acceptable
• Land approvals in place
• Campus development on track
• Interim accommodation
arrangements made and acceptable
• UoW’s leadership capacity not
disproportionately impacted
• UoW’s reputation enhanced
Figure 8: Possible gates and criteria
20
• New model and structure in place
• Accreditation and approvals achieved
• Political and competitive environment
acceptable
• Land approvals in place
• Campus development on track
• Interim accommodation
arrangements made and acceptable
• UoW’s leadership capacity not
disproportionately impacted
• UoW’s reputation enhanced
6.3
Projected growth in student numbers
The phased approach to development, with a new campus beginning operation between 2021 and 2024
(depending on Californian regulatory requirements and consequential construction period) would drive
undergraduate student recruitment. The further phased construction programme would also partially
determine numbers of students able to be admitted at any specific stage.
Initially, the time at which postgraduate recruitment could occur would be driven by the Californian
regulatory accreditation and approvals processes and a move to interim teaching and learning
accommodation.
The prime undergraduate student market would be high school students who meet the entry criteria
to attend the best UC system and private Californian universities, but who, despite being academically
excellent, are currently forced to study out of state due to a deficiency of places at California’s elite
institutions. To attract these very highly qualified students, the financial model for the University of
Warwick in California would include provision for suitably attractive financial aid/scholarship/incentive
packages, taking into account the University of Warwick in California’s intended market positioning.
The projections below show a potential projected growth in student numbers up to the end of the tenth
year on a new campus.5 This equates to a total student population of 6,060 with some 1,500 being
postgraduate taught/research students.
7000
Phase 0
Phase 2
Phase 1
5925
6000
6030
6060
4530
4560
5660
5115
Number of Students
5000
4300
4425
4180
4000
3340
3715
3010
3000
2370
2200
2000
1545
900
1000
0
555
0
90
120
2017/18
2018/19
2019/20
240
0
390
135
30
2020/21
2021/22
450
360
1440
780
840
870
900
900
900
900
660
450
530
580
600
600
600
360
2025/26
2026/27
2027/28
2029/30
2030/31
2031/32
765
600
90
180
270
2022/23
2023/24
2024/25
2028/29
Academic Year
PGT Student Population
PGR Student Population
UG Student Population
Total Student Population
Figure 9: Forecast growth in student numbers
5. This is shown as 2031 but would be dependent on undergraduate admissions being in 2021. This date would be affected by the date at which the construction
of the new campus could commence.
21
7.
Higher Education environment:
legislation, regulation and accreditation
Regulation, accreditation and approval to operate in the US are complex; bureaucratic and multi-agency;
time-consuming, lengthy and costly. In the context of the University of Warwick, establishing a presence
in California it is also new and much of the regulatory policy and practices are being drafted currently.
Access to student aid is determined by accreditation and approval and, as such, is a key facet of student
admission success.
Contact has been made with the relevant agencies in the US but further due diligence would need to be
undertaken in determining the form of degree structure the University could have accreditated e.g. would
this be a three or four year undergraduate degree? Initial market research (see section 13) suggests an
interest in a three year degree from prospective undergraduate students. Preliminary engagement with
regulators identifies this as problematic under current arrangements.
The approval of degree structures and the duration of the accreditation process and its outcomes would
have significant financial implications, particularly in relation to Phase 2 and thereafter. As is set out in
more detail in section 7.3 below, this is because federal student financial aid for students is only available
to those attending accredited institutions.
The following section describes the US higher education system and the relevant regulatory, approval
and accreditation processes. Appendix C shows the indicative roadmap, as is currently understood, that
would need to be followed to achieve the proper permissions to operate in California.
7.1
Overview of US Higher Education system
The US higher education system is mature, complex and highly devolved. The federal government does
not have any direct authority over education in the US. The federal government does, however, provide
important policy leadership and it administers federal financial aid programmes. The education system is
subject to a wide variety of federal, state and local laws, plus court decisions and regulations. In addition,
there are rules and policies adopted by educational associations and individual institutions that often
have legal status with respect to matters within their competence. As a consequence, US educational
institutions can vary widely in the character and quality of their programs.
Higher education institutions in the US are organised and licensed or chartered as non-profit or for-profit
corporations, regardless of whether they are public or private. Public institutions are governed by boards
of trustees appointed by state authorities and receive an annual allocation of state budget funds. Private
institutions are independent of state control even though they are licensed or authorised to operate
by the state government. They may be non-profit or for-profit, and may be secular or affiliated with a
religious community. Private institutions are governed by a board of trustees elected by the board itself.
Both public and private institutions may charge students tuition and fees; may receive gifts and donations
and hold an invested endowment; and may earn income from research grants and contracts.
7.1.1
Community and junior colleges
Community colleges are comprehensive public institutions that provide a wide variety of educational
services, ranging from adult and community education services, through postsecondary career and
technical education, to academic and professional studies at university level permitting transfer to
higher level studies. Community colleges traditionally offer associate degrees that comprise two years
of full-time study (currently UG applicants to the University of Warwick would be considered with an
associate degree with a grade point average of 3.3 or greater). Some community colleges have started to
offer accredited bachelor’s degree programs. Nearly all community colleges have transfer (articulation)
arrangements with local public and private colleges that permit qualified students who have completed
approved courses of study to transfer to bachelor’s level studies with up to two years of academic credit.
22
7.1.2
Public and private colleges and universities
Institutions that offer bachelor’s and higher degrees are often called ‘senior’ colleges or universities, to
distinguish them from ‘junior’ colleges and other institutions offering the associate degree as their highest
qualification. However, some colleges and universities offer studies at all degree levels from the associate
to doctorate. The terms ‘college’ and ‘university’ are not legally protected, neither are institutional titles
such as ‘institute’ and ‘academy’. An institution is permitted to use the title bestowed upon it in its state
charter or license to operate. Institutions are classified according to the highest degree they award,
regardless of title, as well as whether they specialise in a few subjects or offer a comprehensive range of
programmes, and whether they serve special populations.
7.1.3
Degree qualifications
Standard US bachelor’s degrees involve four years of full-time study, where the first (‘freshers’) year is
broadly equivalent to Year 13 in UK schools. Inter-disciplinarity is central to US bachelor’s degrees, where
degrees include breadth and depth of study in the form of liberal/general studies (e.g. public speaking,
mathematics, writing) plus a ‘major’ subject. This approach is not standard in UK undergraduate degrees.
Master’s degrees usually require two years of full-time study in the US and do not always include a
research component. Master’s degree are commonly offered in business, education, health/medicine,
engineering, public administration and social services but not in subjects where a postgraduate degree is
not required by the job market or for entry to a US doctoral degree.
US doctoral degrees usually take a minimum of three years. Students are supervised by a doctoral
dissertation advisor and a doctoral committee (2-5 senior faculty including at least one from another
subject area or university).
7.1.4
Academic credit system
There is no standard credit system in the US. Earned credits are most commonly identified by the term
‘credit hours’ or ‘semester credits.’ These credits represent a summation of formal contact hours and
independent study, research and class or seminar preparation. A standard full-time student load is 15
credits per semester or 30 credits per year. Credits are typically used to assess tuition and fee charges and
determine student status.
A typical bachelor’s degree programme on a semester calendar requires the student to earn at least 120
credits. Normal full-time registration is usually 15 credits per semester or 30 per year (shortfalls can be
made up in summer sessions or by independent study). This represents at least 5,400 actual hours of
academic work, and well over that total for sciences and engineering degree programmes.
A master’s degree programme including a research thesis or project represents over 4,000 actual hours
of supervised and unsupervised (independent research) study, while a doctoral programme can represent
8,000 or more actual hours of advanced study and research beyond the master’s degree.
7.2
Overview of California academic regulatory and accreditation environment
State control over private postsecondary education was tightened considerably after a period in the
late 1980s when California developed a reputation as the ‘diploma mill capital of the world.’ The Private
Postsecondary Education Act (2009) introduced mandatory State licensing of private institutions, which
have a physical presence in California and offer postsecondary education to the public for an institutional
charge. The Bureau for Private Postsecondary Education (BPPE) is located within Californian State
Government’s Department of Consumer Affairs and is responsible for licensing arrangements.
Unlike the UK, there is no single accrediting body for higher education institutions in the US. In order
to ensure a basic level of quality, the practice of accreditation arose in the United States as a means of
conducting non-governmental, peer evaluation of educational institutions and programmes. Accrediting
agencies have developed criteria and procedures for evaluating institutions or programmes to determine
whether or not they meet quality thresholds. Accredited status is widely recognised as an external
validation of education quality by students and prospective employers.
23
Regional accrediting agencies accredit comprehensive institutions offering undergraduate and graduate
degrees across a range of subject fields. The regional accrediting agency responsible for Californian
universities is Western Association of Schools and Colleges (WASC) Senior College and University
Commission. In addition to six regional accrediting organisations there is a complex array of subject
specific and professional accreditation bodies in the US.
7.3
Institutional eligibility for federal student financial aid
The US Department of Education requires private institutions wishing to offer federal student aid to be
legally authorised by the state to provide a postsecondary education and to be accredited by a nationally
recognised accrediting agency. These criteria would be met by having approval to operate granted
by BPPE and being accredited by WASC. The interrelated steps required to achieve this position,
presented with the opportunities for course delivery at each stage, are outlined in diagrammatic form in
Appendix C with key points highlighted below.
Institutional eligibility for federal student financial aid would be essential for the viability of any
proposed teaching activity in California in the medium to long term. If the University of Warwick were to
establish operations in California, students would not be eligible for federal aid until a specific stage of
accreditation has been successfully reached. In the interim, the provision of student aid packages would
be provided through UDT and are reflected in the key assumptions in the financial model for Phase 1.
7.3.1
Bureau for private postsecondary education approval to operate
The establishment of a physical presence and substantial planning and process and policy development
would be required before an application could be submitted to BPPE. Provisional approval to operate
would need to be granted prior to commencing delivery of any degree courses in California. Initial
application processing currently takes up to one year to complete, although BPPE is working to reduce
this. New legislation came into effect in early 2015, which will directly affect the approval process. Specific
details of the impact of these changes on the approval process cannot yet be confirmed. Where possible,
BPPE has shared indicative guidance that is reflected in this section with the caveat that this may be
subject to change.
A small number of scenarios are exempt from licensing requirements, one of which could present a viable
opportunity for Warwick in California in advance of degree delivery. This would be to offer closed, nondegree courses as continuing professional development (CPD) to individual businesses or professional
organisations. BPPE has identified that, until an institution is approved to offer degrees, it may not
operate under a ‘university’ name, which may reduce the reputation building benefit of this type of
activity.
Once granted provisional approval to operate, an institution is permitted to offer a maximum of two
degree programmes whilst working to achieve accredited status within specified time limits. The
institution would need to have achieved a fully accredited status within five years of being granted
provisional approval to operate. Once accredited, an institution’s on-going licence to deliver degrees can
be directly linked to standard accreditation renewal processes thereafter.
It is important to note that BPPE will only approve degrees that comply with minimum educational
requirements, prescribed by the state6 as follows. The most significant aspect of these requirements for
Warwick would be the definition of a bachelor’s degree.
a.
“A bachelor’s degree may be awarded to a student whom the institution can document has
achieved sequential learning equivalent in general education and equivalent in depth of achievement
in a designated major field to that acquired in four years of study beyond high school, as measured
by 120 semester credits or its equivalent. At least 25 percent of the credit requirements for a bachelor’s
degree shall be in general education.”
b. “A master’s degree may only be awarded to a student who demonstrates at least the achievement of
learning in a designated major field that is equivalent in depth to that normally acquired in a
minimum of 30 semester credits or its equivalent in one year of study beyond the bachelor’s degree.”
24
c. “A Doctor of Philosophy degree (PhD) is a research-oriented degree requiring a minimum of three
years of full-time graduate education or the equivalent in part-time study. Such a doctoral program
shall include substantial instruction in both theory and research at an advanced level in a designated
field and specialty, and may only be awarded to a student who has completed a program of study
that includes research methodology and demonstrated learning achievement through original
research directly attributable to the student.”
Additional requirements are specified relating to the supervision and evaluation of PhD students.
A more detailed evaluation of the impact of these requirements on existing University of Warwick
undergraduate degrees would need to be undertaken to identify the extent to which the UK degree
structure and curriculum would need to be adapted and to test the extent to which prior credit
arrangements may mitigate bachelor’s degree semester credit and study duration requirements.
The extent to which BPPE will accept evidence based on UK operations would need to be explored
more fully, early indications are that all key evidence would need to be based on University of Warwick
operations in California.
7.3.2
Western Association of Schools and Colleges accreditation
For a brief period, WASC accepted applications from international institutions with the aim of learning
about other higher education systems. This application route has been formally closed and WASC is
no longer accepting accreditation requests from international institutions that are based outside the
US. WASC has, however, identified a potential application route should the University of Warwick wish
to seek accreditation under its ‘Separately Accreditable Institution’ Policy. To fulfil the requirements of
this policy, an ‘instructional site’ operating in the WASC region would need to have sufficient delegated
authority from its home/parent institution such that it demonstrates operational independence.
Eligibility under this policy normally depends on the instructional site:
a. Having substantial financial and administrative independence from the home institution including
matters related to personnel;
b. Having a full-time chief administrative officer;
c. Being empowered to initiate and sustain its own academic programmes;
d. Meeting, or having the potential to meet, the eligibility requirements of WASC; and
e. Having degree-granting authority in the state or jurisdiction in which it is located.
The proposal under consideration is based on degrees being awarded in California under the University of
Warwick’s existing UK degree awarding powers, which would conflict with the final eligibility criterion.
WASC has informally indicated that the most important aspect of this criterion is whether an entity in
California has the authority to determine whether or not students have satisfied the award requirements,
indicating that WASC may be willing to apply discretion in the interpretation of the policy. WASC
recognise that the University of Warwick would need to retain close control over any early activities in
California but could have a long-term vision to increase the level of autonomy over time.
To be eligible for WASC accreditation, the University of Warwick would need to determine a governance
structure that retains appropriate levels of control at each stage of development to assure academic
standards and protect the Warwick brand but that, ultimately, the structure would also need to
meet WASC’s expectations of operational independence. WASC is flexible and open to finding ways
of reconciling academic differences across national boundaries provided their core standards are not
compromised. There is also a clear understanding that WASC would be willing to accept evidence of
the University of Warwick’s UK operations, within reasonable limits, in the context of meeting WASC
accreditation requirements.
6. Title 5. California Code of Regulations, Division 7.5 Private Postsecondary Education
25
Positive dialogue is on-going with senior management in WASC to explore hypothetical ways in which
accreditation of University of Warwick activities in California could be taken forward should the need
arise. Should Senate and Council support the continued exploration of the opportunity in California,
a high level overview of the University of Warwick proposition could be formally shared with WASC at
Commission meetings on 18-20 February 2015 with the aim of seeking more formal confirmation that
WASC would be supportive of the University of Warwick engaging with the accreditation process. This
could be used to seek more formal assurance that the University of Warwick would not be automatically
excluded from eligibility under the ‘Separate Accreditable Institution’ Policy on the grounds of proposing
to award degrees in California under UK degree awarding powers.
7.3.3
Student immigration
To enrol international students who require a visa to enter the US, an educational institution requires
Student and Exchange Visitor Program (SEVP) certification. It takes approximately 9-12 months to
complete the SEVP certification petition once the institution has been granted nationally recognised
accredited status and can evidence at least two years of operations in the US.
The financial model is based on the assumption that all fee income for the University of Warwick in
California would be generated by domestic US students for the initial years of operation.
7.4
Quality Assurance Agency accreditation
The protection of the University of Warwick’s academic standards would be paramount at all times and
any programme delivery in California would be subject to routine scrutiny by the Quality Assurance
Agency (QAA). The findings from previous QAA reviews of overseas branch campuses and other
international institutional arrangements would inform the detailed development of any activities in
California.
26
8.
Competitive environment
8.1
Phases, target segments and comparative institutions
The US higher education market is a mix of Public, Private Not-For-Profit and For-Profit institutions,
categorised as Universities, Research Universities and Liberal Arts Colleges, ranked within a variety of
frameworks (such as ‘National’, ‘West Region’ or ‘Liberal Arts’).
It is a characteristic of the US system that undergraduate students tend to choose their institution and
then the course they wish to study (many don’t actually specify a major/minor until their third year). In
contrast, graduate courses are typically chosen by subject first, then institution.
Initially (a few hundred taught PG students on a limited range of courses)
The University of Warwick would be a small graduate school and choosing comparative institutions
depends on the subjects the University intends to offer.
Then (building up a range of courses delivered on the new campus)
The University of Warwick in California would potentially be more like a liberal arts college (confusingly,
some conduct research and teach science and engineering as well as more traditional ‘liberal arts’
subjects).
Then (delivery of a full range of subjects and research)
The University would be competing with national universities on a number of dimensions.
8.2
Comparative institutions
Phase
Institutions
Notes
Initially, Graduate School
Claremont Graduate University
&/or others TBC depending on choice
of proposed subjects
Claremont is part of a group of highly
ranked liberal arts colleges just outside LA
Then, Liberal Arts
Loyola Marymount
Chapman University
Pomona College
Claremont McKenna`
Harvey Mudd
These are all highly ranked liberal arts colleges in the LA area. The last 3 are all part
of the Claremont system. Harvey Mudd is
a “liberal arts college of science, engineering, and mathematics”
Then, Research led University
UC Berkeley
UC Davis
UC Merced
University of Stanford
University of the Pacific
University of San Francisco
Santa Clara University
The UC campuses are the highest tier of
the Californian State university system.
UC Merced was founded in 2005 and may
provide useful insights into how to build a
new campus from scratch. The other four
institutions are all private universities.
All seven of these institutions are highly
ranked and within a two hour drive from
Sacramento
27
8.3
Figure 10: Comparative institutions
Comments on the Selected Institutions (see Appendix D for further details)
Initially
Claremont Graduate University is a graduate-only college, part of a group of highly ranked liberal arts
colleges just outside Los Angeles.
Then
It is interesting to note that Northern California appears to lack the concentration of highly rated liberal
arts colleges that can be found in and around Los Angeles (William Jessop, the local liberal arts college is
not highly ranked).
Harvey Mudd is an example of a college that classes itself as ‘liberal arts’ but focuses on maths, science
and engineering rather than more conventional liberal arts subjects.
Then
UC Berkeley and to a lesser extent UC Davis are flagship institutions within the top tier UC system. UC
Davis is on the outskirts of Sacramento and would be a candidate for resource sharing. UC Berkeley is a
couple of hours away on the Sacramento side of bay area.
UC Merced is interesting as a case study of how to build a new research university from scratch. It is about
two hours South of Sacramento in the Central Valley.
University of the Pacific is about half way between Sacramento and UC Merced (in Stockton, about an
hour South). It is similar in terms of scale (if not aspirations) to the campus considered in this report.
Stanford is one of the top 10 US higher education institutions. As such it is highly sought after and selects
only 5.1% of those who apply, demonstrating that there is no lack of demand for elite institutions.
The University of San Francisco and Santa Clara University are examples of well-regarded private
institutions that fall outside the very highest rankings. Both are within 2.5 hours of Sacramento.
28
9.
Operating models
The operating model for the University of Warwick in California would be linked to its phased
development and reflect the teaching and research being undertaken at that point. Proposed guidelines
and high level approaches are outlined below.
9.1
Guidelines
• The University of Warwick in California should be clearly linked to the University of Warwick in the UK.
The University brand should be obvious and paramount.
• There should be good working relationships between the academic, student and professional and
administrative communities from the outset.
• Research collaborations and joint teaching should be supported and promoted by any operating model.
• There should be a University of Warwick ‘feel’ about the University of Warwick in California campus,
activities and operations.
• The operational model should promote active learning across both of the campuses.
• The development and operation of the University of Warwick in California should not jeopardise the
financial, operational or brand sustainability or security of the University of Warwick. The model
should minimise and mitigate any such potential negative impact. There would be no loans or borrowing.
• The model should promote and support agile working, minimal bureaucracy, innovation and
proportionality in delegated authorities.
• The operating model should be fit for purpose for each phase of the University of Warwick in
California’s development.
• There need to be adequate controls and sound management to ensure that there is no fraud or
mismanagement, conflicts of interest are managed, litigation is not incurred and the University’s
reputation is maintained.
• Staff should be of the highest quality and integrity and be independent of the donors.
9.2
A developmental/phased approach
The operating model would develop over time, as the University of Warwick in California became more
established. The model required to run a fully operating university would not have to be the same as that
for the initial phases of awareness raising, initial research collaborations, post-graduate teaching of small
cohorts and preparation for the opening of a new physical campus.
The approach would involve three stages of operational model, structure and entity:
Phase 0
Governed by a contractual undertaking
between University Development Trust
and University of Warwick.
Phase 1
Governed by a contractual undertaking
between University Development Trust
and University of Warwick.
Phase 2
Final implementation of new model and
structure.
Figure 11: Stages of operational model
29
10. Campus estate and infrastructure
requirements and issues
The site under discussion is a section of land
totalling 1159 acres, of which 600 acres would be
used for the University Zone (UZ). The land has
the benefit of a land use designation as a Regional
University Specific Plan (RUSP) and is located in
Placer County, adjacent to the boundary of the City
of Roseville. Warwick’s Coventry campus is 790
acres.
Under US planning regulations, a number of
approvals would still need to be obtained before
the site could be developed as an HEI, and these
approvals could take a number of years. A realistic
timeline could see a spade in the ground around
2020, if the University decides to pursue this
project.
The land is predominantly open agriculturally
zoned land, which is currently isolated, flat and
featureless.
Figure 12: Placer County (2014)
In 2005, the University of California system (a group of 10 public university campuses in the State) began
development of a site in Merced (now known as UC Merced), situated to the south east of San Francisco.
The development of UC Merced could serve as a blueprint for a campus development in Roseville, should
the University decide to go ahead with this project.
Figure 13: UC Merced (2005)
Figure 14: UC Merced Science and
Engineering Block (2014)
30
10.1
Phase 2 Campus development
If the University of Warwick were to proceed with a campus in California, approximately four to five years
of development work would be required to enable the building of the basic campus infrastructure (roads,
services and initial two or three buildings plus landscaping).
If the University of Warwick in California were to be a research-led University, this would also shape the
requirements of any campus build. Space requirements for teaching and research would be influenced
by the number of students and staff as well as the types of faculty. Standard US ‘benchmarks’ for space
equate to 13.2sq.m. gross internal building area per FTE student.7
Considering other local state university campuses, the 600 acres designated for the UZ would be able
to accommodate future development well beyond the requirements of the academic core and provide
appropriate levels of student support facilities, student and faculty housing, athletics and recreation and
physical plant, if the University decided to undertake this project.
In the early stage of development, student numbers would be low but would increase rapidly. Building
a campus for a targeted student cohort of 6,000 by year 108 would mean some buildings would be
underused for some years, and may be challenging to finance. The alternative would be to start with a
core of buildings, initially of mixed use, then to construct further buildings and consolidate these into
schools or faculties as demand required. Early development would need to be managed to ensure that
staff and students avoid the feeling of being continually located in a construction site.
Buildings would be required to be flexible to support the different needs of the faculty and students, and
this would need to be incorporated into any design.
Figure 15: Sample masterplan layout. NB: diagrammatic only, not intended for design purposes
7. For comparison purposes, the median non-residential floor area from UK HEIs is 9.98 sq. m. Russell Group institutions: 16.7 sq. m. TRAC Group A institutions:
17.77 sq. m. University of Warwick: 17.33 sq. m.
8. Year 10 is used indicatively as the tenth year of operation of the campus. This could vary in date depending on construction and elated factors.
31
10.1.1
Housing, parking and facilities:
As in the UK, US universities encourage students to live on campus for at least the first year of study.
An example is the UC system that has long term plans for 30-75% of all students living on campus. The
University of Warwick would need to explore the option of providing sufficient student housing on
campus should this project go ahead.
Unlike UK universities, US campuses generally provide parking spaces for high numbers of students as
well as staff. UC Davis, for example, provides 0.62 parking spaces per FTE student. However, once on
campus, traffic congestion is reduced by the use of bicycles to move around campus. This would be an
attractive model to consider should the University of Warwick in California move ahead, and would be a
demonstration of commitment to reducing the carbon footprint on the local area.
Additional facilities to make a campus more attractive to staff and students include athletics/sports
facilities, and arts facilities. Work would need to be undertaken to establish the potential for these two
areas, although feedback from visits to US universities supports the need for such facilities in order to
provide an holistic student experience and engage with the local community.
10.2
Phase 1 interim accommodation
To accommodate a potential start-up phase, a lease would need to be taken on suitable premises
for a period of around five years. During a visit to California in October 2014 by University of Warwick
representatives a number of properties were visited to explore the types of accommodation available (see
sample image below).
Figure 16: 201 Creekside Ridge, Roseville.
32
11.
Employment requirements and issues
11.1
Overview of employment considerations
Key considerations of employment models for the University of Warwick in California would include:
a)
b)
c)
d)
e)
f)
g)
11.2
The academic benefit to the individual and the University;
The attractiveness of the proposition to talented staff;
The practicality of the arrangement;
The simplicity of the model;
The overall cost to the University of Warwick in California;
Full compliance with legal and regulatory frameworks in the US and UK; and
An acceptable level of risk.
Employment model: working assumptions
There would be a senior academic lead with overall responsibility for California-based activities and
developments who would be a University of Warwick employee. It is anticipated this academic lead will
spend increasing amounts of time in California from the early stages of the project and be primarily based
in California once operations have commenced.
In the first stage of development, a ‘flying faculty’ model would be adopted in which academic staff
involved in teaching and the development of research activities in California would be UK-based Warwick
employees undertaking short to medium term international assignments. During this stage, the
University of Warwick would be actively testing opportunities for research collaboration and demand for
UK degrees and would gain valuable experience of operating in California.
In the first instance, a maximum of two PGT degrees could be offered, limiting the staff resources required
to deliver pilot programmes. The staffing model would facilitate the showcasing of the University of
Warwick academic talent and allow the University to establish and maintain appropriate academic
quality standards.
A small number of senior professional staff lead/s responsible for administration in the University of
Warwick in California and its interface with the University of Warwick UK would initially undertake
medium to long term assignments in California to establish local operations and processes. The
professional staff team would comprise a small number of locally employed staff on fixed term contracts,
which would be directly linked to the duration of the first stage of development. This team would
be supported by University of Warwick professional staff from specialist functional support areas
undertaking short-term assignments to train local staff and establish and oversee operating protocols.
There would be a shift towards more locally employed academic and professional staff. In time, it
is anticipated that the vast majority of staff would be locally employed. The expectation is that the
establishment of an academic staff community in California would be a natural extension of the
international community at Warwick. Key staff could undertake short and medium term international
assignments in both directions between the campuses. This would play an important role in maintaining
University of Warwick standards in the long term, developing and maintaining a sense of the University’s
identity and community, and sharing organisational learning in both directions.
Throughout the development stages, ‘guest’ lectures from high profile external academics, including
individuals from strong local or global universities would be encouraged. This would support the
development of the University of Warwick brand in California by association with established US or global
university brands.
33
11.3
Opportunities for existing Warwick employees
A physical presence in California would have the potential to offer valuable career and personal
development opportunities for existing University of Warwick staff and create an attractive proposition
that would enable the University to continue to attract, and retain, excellent staff to both campuses.
The delivery mode for courses delivered in the University of Warwick in California would be designed
to maximise flexibility, such as semester-based teaching alongside more intensive teaching blocks, to
minimise adverse impact on University of Warwick departments and recognise personal commitments.
Consideration of teaching contingency arrangements in the event of unplanned staff absence in
California would be essential. It is recognised that additional resources will be required to deliver courses
in California. Warwick staff mobility policies are under development to ensure appropriate arrangements
would be in place for short and longer-term international assignments.
11.4
Employment of new staff in the US
The working assumption is that local staff would be employed by a new legal entity that would be
established in California. The salary levels and contractual terms and conditions that apply to staff who
would be employed by this entity would be predominantly based on Californian norms. Some contractual
components would be harmonised with University of Warwick norms to ensure equity and quality
standards, such as academic probation and promotion. The recruitment and selection process for all
locally employed staff would include appropriate input from Warwick staff to assure quality.
In the US, academic staff are often contracted to work for nine months of the year, to cover taught
sessions. At such time that academic staff start to be locally employed, the University of Warwick could
consider offering contracts which cover nine months in California plus three months at University
of Warwick UK to maintain strong departmental and faculty links between the two campuses.9 It is
important to note that if academic staff were employed by a subsidiary of Warwick, or a third party, they
would not be eligible for submission by the University of Warwick UK under current Research Excellence
Framework criteria.
11.5
Specialist advice and resources
If Senate and Council decide to proceed, the University will commission specialist advice and support that
includes US employment law, pensions, immigration, taxation and ex-pat employment arrangements.
A high level independent review of the legal environment has been conducted as part of due diligence
activities.
12. Financial appraisal
The financial modelling of the University of Warwick in California has been developed by an in-house team
within the Finance Department under the direction of the Group Finance Director.
The figures presented are initial drafts and more work is required to refine the estimates, in particular to
amend the cost base for the increased cost of overseas working and US regulation. The project is evolving
and therefore costs could change accordingly.
See the Appendix E for further information.
9. With the costs covered by the University of Warwick in California
34
13. Marketing, market research and branding
13.1
The Warwick brand
The University of Warwick’s marketing team has undertaken an extensive branding exercise. The brand
proposition is that the University of Warwick has the ‘nous’, creativity and belief that ‘anything is possible’
of the entrepreneurial world of business.
Every major project that the University of Warwick undertakes should reflect the ambitions and
positioning of the Warwick brand. The University of Warwick in California proposition would embody the
University’s values in many ways:
• Entering the world’s most competitive and successful education market would underline our ambition
and drive, and our desire to achieve teaching and research excellence in a global market.
• By working closely with the University Development Trust, which features some of the region’s most
successful business people, the project could be injected with a strong sense of optimism for success
and a clear response to the challenge ‘what if?’
• By connecting with California’s entrepreneurs and business community, the University of Warwick
would expect to build on its reputation for enterprise and build sufficient capacity to offer bursaries
(through UDT) to excellent students who otherwise could not afford to attend university.
The messaging and visual identity of the University of Warwick would need to be reflected in all
communications and marketing activities out of the University of Warwick in California. It would be
important for the new University of Warwick brand to remain consistent and consistently applied.
13.2
Market research
13.2.1
Overview
Desk-based background and contextual research was commissioned by UDT with advice from the
University of Warwick. It was undertaken by Huron and CSER (US based business consultancies with
local knowledge and contacts in the California market). This was quantitative data drawn from online
and library resources. Whilst helpful background, it did not provide the primary research required to
understand, for example, how US students make choices around HE, their responses to a UK institution
based in California and their responses to the courses that the University might offer. Appendix F includes
an overview of key findings from these reports.
More detailed independent research was commissioned by the University of Warwick from i-graduate,
the headlines of which are below. 470 respondents took part in the survey, which was split equally
between undergraduate and postgraduate prospective master’s students. 50% of the sample was drawn
from California, with the remainder from neighbouring states. Only respondents with a self-reported GPA
of 3.0 and above were permitted to complete the survey.
13.2.2
Responses to a UK degree offering in California:
• The respondents did not provide any majority preference regarding the quality of a UK vs a US degree,
but a larger minority (25-30% bachelor’s and master’s) favoured the UK option (10-15% of the same
group favoured the US option).
•
Before background information was provided about the University of Warwick, no more than 10%
of undergraduate or postgraduate respondents reported definitive prior knowledge of the University.
Awareness was greater among respondents with higher GPAs (42% of respondents with the highest
GPA had definitive knowledge/heard of the University of Warwick).
• However, once respondents read the profile about Warwick, there was strong interest in finding out more.
35
13.2.3
How US students select a HEI:
• Despite different first priorities, ‘Programme’ emerged as the most important feature in respondents’
choice of HEI.
• ‘Location’ and ‘Institution’ fared around the same for both groups, although when drilling down to the
respondents with the highest GPAs, that group gave much more weight to ‘Institution’.
• The features that generated the most positive response from bachelor’s students were scholarships,
evidence of career success of alumni, generous credit transfer and work experience opportunities.
•
13.2.4
Master’s respondents were similar, although preference for work experience was lower. When the
possibility of a UK-style three year bachelor’s degree and a one year master’s degree were offered (as
opposed to four year bachelor’s/two year master’s which is currently the US standard), interest was
increased significantly across all groups (48% bachelor’s, 57% master’s were ‘very interested’). (Caution
should be given here that a three year bachelor’s degree might not be possible as state legislation
prescribes degree structures based on the US UG degree model. Further discussion would be required
to establish viability (See 7.3.1).
What features and programmes students rate as important in a campus:
• The key facilities that students expected were around faculty, pedagogy and study facilities.
• Undergraduate respondents stated the top three features of importance as ‘A balance of theoretical
and hands-on learning’, ‘A culture of first-rate teaching skills among faculty’, ‘First-rate study and
library facilities’.
• For postgraduates, the top three features were ‘A culture of first-rate teaching skills among faculty’,
‘First-rate study and library facilities’, and ‘A balance of theoretical and hands-on learning’.
• For both groups, sports featured second to last in the list of preferences.
13.2.5
Responses to pricing and bursaries:
• The research proposed a ‘sticker price’ of $40,000 p.a. indicating that bursaries may be available to
reduce that price. 13% of undergraduate and 16% of postgraduate respondents would be prepared to
pay this level of pricing.
• The majority of respondents expected that University of Warwick in California fees would be higher
than tuition at the type of institution they might attend, once they knew more about Warwick.10
13.2.6
Responses to initial PGT offering:
• The proposed subjects for the initial phase of University of Warwick in California are postgraduate
taught courses. Business, Computer Science and Economics have been considered along with others.
•
36
Respondents were asked what their proposed course of study would be, and postgraduate
respondents listed Business and Administrative Studies as the most popular (22.8%). Computer
Sciences and Information Technology was the third most popular subject area in this group (16.4%).
6% of postgraduate respondents intend to study Economics.
13.2.7
Summary and discussion of i-graduate findings:
• The strong message from the i-graduate research is that, in order to succeed in the Californian HEI
market, the University of Warwick in California would need a unique proposition.
• The conclusion of i-graduate from its research was that “the one very specific and differentiated
feature put forward by Warwick, to offer degrees shorter than the US norm, received the most
enthusiastic response from prospects”.
• In i-graduate’s opinion “the opportunity for Warwick may be to take conventional degree length in the
UK and apply it in the US where it would be decidedly unconventional. A prestigious non-US university
may be best placed to position such an innovation.
• It concludes “Without a very distinctive offering, such as shorter degrees, a US Warwick campus risks
being lost in a very large crowd”.
•
If a three year bachelor’s was not feasible under state legislation, then careful thought would need to be given as to what the unique offer would be. This research pointed to the importance of graduates
having enhanced career skills, including work experience, as key to attracting students. This would
require more development.
•
A significant number of prospective undergraduate and postgraduate respondents were interested in
studying Psychology. Given the University of Warwick’s expertise in Behavioural Science, there could
be the potential to include this as an underpinning component across all degrees. This could be one
way in which the University of Warwick offer would be unique.
• A high number of respondents were also interested in online delivery. This points to the potential for
blended learning, in particular for master’s courses where the interest in online delivery was strong.
• High numbers of respondents indicated that financial support was a major factor in their decision making.
• The questionnaire put a price of $40,000 p.a. to respondents. Many of these respondents would
expect to attend public universities which charge much less than this. 13% of bachelor’s and 16% of
master’s were open to the proposed price of $40,000.
Strengths
Weaknesses
• 25% ‘strong’ interest and 50% ‘some’ interest in finding out
more about the campus. Interest rises with GPA
• Majority see no difference in appeal between a UK vs US
institution-being a UK institution is not enough
• Greater interest amongst 25-34 age group
• Predominantly neutral reaction to Roseville as location
• Only 13% of bachelor’s prospects and 16% of master’s
prospects willing to pay $40,000
Opportunities
Threats
• Strong interest in the shorter UK degree length
• Low awareness of UoW in California
• Interest in work experience, credit transfer and alumni
career success
• Small market at GPA 4.0 (just 10% at GPA 4, rising to 35%
at 3.6-3.9*)
• Significant interest in wholly and primarily online study
(particularly at masters level)
• Small market considering highly selective private
institutions (15%), 22% considering ‘somewhat selective’
private institutions
• Balance of theoretical and hands on learning, first rate
teaching skills, first rate study and library facilities
important to decision
• 75% bachelor’s prospects taking at least one AP subject
• Price sensitive-high importance of scholarships in decision
making process
• Strong regional competitors
GPA = Grade Point Average *nb sample 100% GPA 3-4
Figure 17: Summary of prospective student survey
10. 16% of respondants indicated that they would consider a ‘highly selective’ institution, which is the proposed nature of University of Warwick in California.
37
13.3
Opportunities re; marketing, brand visibility and PR
It would be vital to undertake a marketing campaign immediately if Senate and Council decide to
proceed, raising the profile of the brand, and testing responses to the campaign at each stage. Using local
knowledge and contacts would be key to success.
Potential marketing and PR opportunities could include:
• Marketing staff based in California working closely with UK team to outline offer and map marketing
campaign as soon as possible; developing and launching a ‘Warwick is coming’ campaign.
• Public events and lectures; receptions; education tours; summer schools; cultural exchanges – all
using big names from the University of Warwick and beyond to underline academic excellence and
commitment to the endeavour.
• Press campaign, highlighting the University of Warwick’s research (in particular collaborations with
US), teaching and social impact in US and overseas.
• Alumni relations campaign informing US based alumni of the proposal and harnessing their networks
to fundraise and profile raise.
• Political campaign – supported by UDT and using their expertise and contacts, raising the profile and
support amongst key political figures locally and federally. Also utilising UK-based political figures to
support the endeavour via their US contacts.
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14. Governance
Governance arrangements would need to be aligned with the operating model arrangements. A possible
approach to the operating model is described in Section 7.
Governance arrangements are ultimately a matter for the University Council. In Phase 0 and part of
Phase 1 (until construction was agreed and undergraduate students were about to be recruited to) the
following broad governance arrangements could be put in place.
• All academic and related plans, activities and programmes would be overseen by Senate.
• Supervision of budget and finance related matters would be undertaken by the University Council.
Appropriate governance arrangements could then be developed alongside the operating model and
legal structures as they emerged, guided by the driving principles (See Section 3) and the guidelines
governing the development of the operating model (Section 7).
15. Due diligence
Polsinelli, a law firm based in California, independent of relationship with UDT, was commissioned to
conduct initial legal due diligence. They were asked to focus on:
• Property due diligence, including a title search and summary of the permitting process for the site.
• Background investigation of the principals, including litigation review of the property donors.
• Corporate due diligence, including current status and assurance of good standing.
• Review of the licensing and accreditation requirements.
15.1
Summary of findings
The report noted a number of details that the University will need to attend to if it decides to proceed,
but raised no ‘show stoppers’.
Polsinelli confirmed that:
• The University Property and the Community Property were placed into limited liability companies
and donated to W. M. Corporation, now known as UDT.
• University Development Trust is a non-profit, 501(c)(3) organisation that has had a high-level mission
focused on educating and informing the American public and describes the Project as its ‘marquee
project.’
The principal donor has a long history of successful development and philanthropy and, based on
information provided, has been extraordinarily generous with the donation of property for the project as
well as operating and development expenses which are not insignificant. The principal donor has been
involved in many companies and a fair amount of litigation, although the litigation appears to be of the
sort that one might reasonably expect to encounter in the ordinary course of business of real estate
development.
39
16. Risk
16.1
Impact on the University of Warwick in the UK
This is one of the principles and conditions highlighted in section 3. The development of the University of
Warwick in California would require the commitment of senior leaders and managers in the University
of Warwick in the UK. A dedicated team (funded by UDT) would be put in place to drive the stages of
development of the University of Warwick in California. The impact on the leadership of the University in
the UK would be monitored and reported on, including at each gate as referenced in figure 8 in section 6.2.
16.2
Risks if proceeding
A high-level risk register is shown as Appendix G. This is selective at this stage and represents the key risks
known and faced at this point. If a decision to progress were made, the register would be dynamic and
flex throughout the development of the project to reflect the changing risks and provide a relevant level of
detail on both risk and mitigation.
The key areas of risk facing the University at this stage of the project development revolve around:
Financial - sufficiency, robustness and timeliness of available funding from UDT (independent due
diligence, robust decision gates, clear forward financial planning with sensitivity analysis, good quality
tax advice, strong legal agreements with ring fencing of the activity, robust forward view of cash flow
availability and clear ‘red lines’ will offer mitigation).
Regulation - requirements in respect of accreditation, licence to operate, land approvals and recruitment
of international students make for a complex and time consuming process. (The University’s clear
understanding of these processes, a developing working relationship with the regulators to develop
what are likely to be new procedures, rigorous project management and robust decision gates will offer
mitigation).
Reputation - the University’s reputation is at risk if it elects to develop this presence in California
and does not deliver. This is a market we have not operated in as an institution before and we would
be breaking new ground in organisational and regulation spheres. Establishing good feedback, key
performance indicators, student satisfaction routes, ranking ambitions and plans and a clear exit plan will
offer mitigation.
Diversionary activity from core business - University leadership and management capacity and
capability may be stretched by the demands of establishing and operating a campus in California.
Resource planning, robust stage gate criteria, effective recruitment and development of staff, full
reimbursement of costs expended on the project in a timely manner enabling back fill arrangements to be
made and quality assurance feedback will offer mitigation.
16.3
Risks if not proceeding
Risks if the University of Warwick does not proceed are largely reputational. It could be claimed that the
University had missed a huge opportunity; may mean that other potential donors or sponsors may be
reluctant to approach the University and, thereby, potentially impact negatively on the University’s global
position. These could be mitigated by an exit plan with a supporting communications plan that would
clearly explain the rationale for not proceeding.
40
17.
Conclusion
This report reflects the potential opportunities, challenges and risks afforded to the University of
Warwick to work with the University Development Trust to develop a presence in California. It is based on
information and data we have been able to acquire to date and is as we understand the issues. This would
be a significant and high profile undertaking for the University. If the University Senate and Council decide
to proceed, there would be more work to do by way of furthering our understanding of the principal
issues and financial requirements. This underpins the rationale for a suggested phased approach.
Appendix H identifies six workstreams that would need to be driven and supported by working groups to
move to the next stage.
41