KL, Dec 3-5, 2007
Institutional Advancement
Higher Education Resources
in the Post-Industrial Era
Kai-ming Cheng
The University of Hong Kong
Kurla Lumpur, Dec 3-5, 2007
Higher Education Developments
• More demand for higher education
• Building elite institutions
• New expectations on higher learning
1
Greater Demand
on Higher Education
Industrial Society: the Pyramid
Higher Education
Industrial Institutions
Higher
Education
Engineers
Technicians
Craftsmen
Operatives
Degrees
Diplomas
Vocational
Training
Basic
Education
• Society has changed …
Hong Kong …
Around 304,000 registered companies (Sep 2006)
99.3％ under 100 (SME)
• 69% of employees
• 94.3% under 20
• 40% of employees
• 87.0％ under 10
• 33% of employees
The United States
Business Enterprises
Shanghai (2005/6)
98％ under 100
•SME: 99.7% 86％ under 20
•Employees:
86.8%
National Bureau
of Economic
Research, 2002
•Total asset: 69.2%
• Over 1,000: 110
• Free-lancers 220,000 estimated
vis-à-vis 2,200,000 in registered companies
Post-industrial: Workplace
Project Groups/Task Forces
Small Enterprises
Free-lancers
Higher Education
On-going processes of
– Re-engineering
– De-layering
– Down-sizing
– Out-sourcing
– M&A
– Closure
Hence,
Expansion of Higher Education!
2
Building Elite Institutions
Establishing elite institutions:
• China:
– Project 211, Project 985
• Pakistan: Major expansion
– 11 new elite universities
• Thailand: Major expansion
– 1 global top-50; 4-5 regional top-50
• South Korea
– BK 21 (Brain Korea 21): Top 10
• Taiwan, China
– 50B for 5 years
• Saudi Arabia
– 2 elite universities
3
Different Expectations
on Higher Education
Organisations
Industrial
• Large pyramids
• Producer-centred
• Departments
• Hierarchy
• Tight structure
• Design at the top
• Assigned procedures
• Rules & regulations
Post-industrial
• Small companies
• Client-centred
• Project teams
• Flat
• Loose & fluid
• Design at front-lines
• Improvised actions
• Fit-for-purpose acts
Working Modes
Industrial
• Division of labour
• Individual tasks
• Specialist duties
• Administrative links
• Credential-based
appointments
• Appraisal by seniors
Post-industrial
• Total solutions
• Team work
• Integrated expertise
• Human interactions
• On-demand, just-intime learning
• 3600 appraisal
Work Activities
Industrial
Post-industrial
• Paper work
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• Circulars
• Minutes
• Documents
• Instructions
• Written reports
• ……
Communications
Brainstorming
E-mailing
SMS
Blogs
Seminars
Debates
Conferencing
Negotiation
Presentation
Confrontation
Lobbying
Retreats
Front-line workers
Industrial
Post-industrial
• Bottom of the hierarchy
• Hiring due to credentials
• Member of a specialised
department
• Implementation of design
• Using specific skills
• Routine and repetitive
activities
• Working according to job
descriptions
• Following set procedures
• Maintaining the convention
• Abiding by rules and
regulations
• Appraised by degree of
compliance
• Stable and secure
• Blue collars
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Member of a small group
Hiring due to personality
Working in teams
Directly facing clients
Handling human relations
Directly facing problems
Anticipating total solutions
Designing solutions with creativity
Using multiple skills
Taking risks
Improvising fit-for-purpose activities
Managing oneself
Learning on-the-job, on-demand,
just-in-time
• Appraised 3600
• Unstable, uncertain and insecure
• Knowledge workers
Individual Lives
Industrial
Post-industrial
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Lifelong career
Long-term loyalty
Occupational identity
Work-study consistency
Org membership
Stable employment
Escalating salaries
Upward mobility
Foreseeable retirement
Constant networks
Stable relations
Security, certainty
Multiple careers
Multiple jobs
Blurred identity
Work-study mismatch
Possible free-lancing
Frequent off-jobs
Precarious incomes
Fluctuating status
Unpredictable future
Varying networks
Changing partners
Insecurity, uncertainty
Expectations …
Industrial
Post-industrial
• Credentials
• Specialized skills
• Planning &
implementation
• Navigating the
bureaucracy
• Following the
heritage
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Communications
Team-working
Human relations
Problem-solving
Risk-taking
Design & innovations
Personal responsibility
Continuous learning
Self-management
Ethics, values, principles
Vertical
Disciplines
Social Capacity
Creativity
Practical Capacity
Theoretical Knowledge
Baseline
Competence
An example …
Accounting
• Mismatch
– Physics, Psychology PhD, Computer Science PhD
• Morgan Stanley
– “Winning Personality”
• Senior Partner Deloitte
– “Integrity and sensitivity”
• KPMG
– More non-accounting graduates
• Society of Accountants
– “Don’t teach!”
Key competencies
• Interacting in socially heterogeneous groups
• Acting autonomously
• Using tools purposively and interactively
OECD: The Definition and Selection of Competencies: Theoretical and
Conceptual Foundations Project (DeSeCo)
Key competencies (OECD)
Interacting in socially heterogeneous
groups
• The ability to relate well to others
• The ability to cooperate
• The ability to manage and resolve conflicts
Key competencies (OECD)
Acting autonomously
• The ability to act within the “big picture”
• The ability to form and conduct life plans
and personal projects
• The ability to defend and assert one’s
rights, interests, limits, and needs
Key competencies (OECD)
Using tools purposively and interactively
• The ability to use language, symbols, and
text
• The ability to use knowledge and
information
• The ability to use technology
Hence,
Greater variety of Learning Experiences
Lives in Higher
Education
Study
Classes
Learning Experiences
Are we interested in
the quality of all these learning experiences
in higher education?
Academic
Classes
Knowledge
Some Trends in Asia
• Unprecedented Expansions
• Building Elite Universities
• Expanded Student Learning Experiences
Who pays?
• Dancing with the Private Sector
• Fostering higher education philanthropy
4
Dancing with the Private Sector
Resource Strategies for HE
Community
Resources
Private
Institutions
Public
Money
Public
Institutions
• Public funding no longer adequate for the
expanded system
• Private participation as a matter of resources
strategy
• Repositioning the Private Sector…
Enhancing private participation
Significance of Private Sector
%
Students
Institutions
Korea
78
87
Taiwan
72
66
Japan
77
86
Philippines
81
75
Indonesia
96
71
Malaysia
92
39
Pakistan
64
18
Enhancing private participation
Significance of Private Sector
%
Students
Institutions
Brazil
71
89
Chile
71
93
Venezuela
41
57
Nicaragua
48
52
Argentina
20
50
The blurring boundaries …
• Purely public institutions
– Government appropriation only
• Public institutions
–
–
–
–
+ partial self-financing programs
+ projects on competitive basis
+ private donations
+ commercial incomes
• Private institutions
– + projects from public sources
– + public subsidy to students
• Purely private institutions
– Tuitions only
Two Sectors?
Public
Private
Or One Continuum …
Public
Private
Harvard expenditures
• 60%
Projects
•65% levy
• 30%
Tuitions
•55% on scholarship
• 10%
Donations
•29.2B at 16.7% p.a.
Dancing with private participation
• Recognizing private contributions
• Blurring the sectoral boundaries
• Innovations of private participation
• Focusing on learners
• Living with the “market”
• Moving beyond the civil service ideology
• New framework of accountability
5
Philanthropy in Higher Education
Evolution of Terminology
• Fundraising
• Resource Development
• Institutional Advancement
Institutional Advancement
• Mobilizing resources beyond government
appropriation
• for the advancement of the institution in
areas of prime importance
• hence enabling the institution to achieve
excellence at a higher plane
• thereby empowering the institution to
enjoy autonomy at a new level
Institutional Advancement
• Donation is not charity to the deprived
• Donation is partnership with the strong
• Donation is endorsement of mission
• Donation is recognition of contribution
Donations, Endowment Investments
Projects, Services, ..
Public Appropriation, Subsidies, …
Higher Education Resources
Philanthropy: a different pie
Government Appropriation +
Government Appropriation
Learners’ Fees + Projects
Government Appropriation +
Learners’ Fees + Projects +
Private Donations
A different paradigm
Public funding
Advancement
• No money, no plan
• No vision, no money
• Budget cut, activity
reduction
• Great vision,
big money
• Look for small money • Look for big money
• Ask for money when • Ask for money when
poor
strong
• Funding is the limit
• Sky is the limit
• Doing what we did
• Scaling new planes
• Steady progress
• Advancement
• Appropriation
• Partnership
Why fundraising?
• Public appropriation maintains us as
just “one of many”
• Advancement makes a difference!
Advancement
= Community Support = Fundraising
= Resources Development = Donations
•Fundraising: How to do it?
Target Goal
Strategies
Capacity & Infrastructure
Needs/Products
Donor Accounts
Activities
Stewardship & Renewal
The Classic Fundraising Pyramid: Gift Profile
Amount of Donations
No of Donors
1
10
1000+
20 April 2002
10%
Premium Gifts & Sponsorships
Corporations
100
Leadership
Gifts
40%
Foundations Individuals
Major Giving
Annual Giving
Hong Kong Universities
40%
10%
International reference
The Pyramid
Amount $'K Min. No. Max. No. Min. Sum ($'K) Max. Sum ($'K)
100,000
2
3
200,000
300,000
30,000
14
18
420,000
540,000
10,000
22
25
220,000
250,000
5,000
25
32
125,000
160,000
2,000
70
80
140,000
160,000
500
130
150
65,000
75,000
100
300
400
30,000
40,000
5
600
1,000
3,000
5,000
1
6,000
10,000
6,000
10,000
TOTAL :
7,163
11,708
1,209,000
1,540,000
Philanthropy: Power of Matching
• Government Matching
– Singapore: perpetual
– Hong Kong: 3B HKD (USD400M)
•attracted USD1B
– UK: GBP200M for 3 years
The Power of Matching: HK
• Government Matching I: 2002-3 (1B)
• Government Matching II: 2003-4 (1B)
• Government Matching III: 2005-6 (1B)
– Attracted over 7.4B
• Stanley Ho Alumni Challenge (500M)
• Azalea 1972 (100M)
Alumni Challenge Effect: 05-06/04-05
Alumni Donations on the Rise
• Alumni Donations:
296M
↑646%
Maximum match $5M per donation per year only
• Number of Donors:
• First-time Donors:
2,455
85%
↑214%
•How to plan …
Example: Planning
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•How to start …
Case Statement
• What are we doing?
• What is so great in what we do?
• Why should we need money?
• How would donation make a difference?
• Why us, and not others?
Institutional Advancement
(the broad sense)
• Communications
–
–
–
–
Public Relations
Branding
Media Relations
Publications
• University Relations
– Alumni Networking
– Government Relations
– Corporate Relations
• Development/Fundraising
After all, …
Higher Education
excels with,
and only with,
Mission and Passion!
Thank you!
kmcheng@hku.hk
Assessing the needs …
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