Ulph

The University of ManchesterA Case Study in Bringing Together UMISTand the Victoria University of Manchester: 

Professor Alistair Ulph Vice-President and Dean of the Faculty of Humanities alistair.ulph@manchester.ac.uk The University of Manchester A Case Study in Bringing Together UMIST and the Victoria University of Manchester

Overview: 

Overview Context: General and Manchester Specific The Key Stages Developing the Vision Due Diligence Transition Stage Factors Leading to Success Main Difficulties Encountered Progress towards 2015 Agenda

Context: General: 

Context: General Globalisation Recognition of education services as a major export Multinational purchasing of research Government Policy and Funding Role of HE in economic regeneration and welfare improvements Reduction in unit of resource and increased SSRs Increased selectivity in funding (RAE) Diversification Focus on institutional character and priorities Challenges to the comprehensive nature of ‘full service’ universities Disciplines, Multidisciplinarity, Interdisciplinarity Discipline boundaries still largely based on 19th century concepts ‘Grand challenges’ require multi- and inter-disciplinary solutions

Context: UK University Mergers: 

Context: UK University Mergers Successful London Guildhall + University of North London = London Metropolitan Unsuccessful Birmingham and Aston Leicester and Loughborough Royal Holloway and Brunel Imperial and UCL Aberdeen and Robert Gordon

Context: Manchester Specific: 

Context: Manchester Specific World class universities powerful drivers of economic development In UK clearly world class universities (Oxford, Cambridge, Imperial, UCL) all in SE; need for a northern economic growth pole Manchester obvious city: strong city and growing regional identity Successful city regeneration after IRA bomb, 2002 C.Games… Universities Manchester (VUM); UMIST; Manchester Metropolitan; Salford VUM, UMIST only serious candidates Combine rather than compete

Context: Manchester SpecificA Shared History: 

Context: Manchester Specific A Shared History VUM and UMIST independent legal entities UMIST obtained degree awarding powers in 1990s Shared operations Joint Material Sciences Department Federal School of Business and Management Transfer of Civil Engineering to UMIST Joint accommodation and careers services Joint submissions for funding for capital and large-scale infrastructure Geographical co-location A very confused brand!

Context: Manchester Specific: 

Context: Manchester Specific Some Key Data about VUM and UMIST (2001/2)

Key Stages: 

Key Stages 1 Developing the Vision 10.2001 - 3.2002 2 Due Diligence and Commitment 4.2002 - 3.2003 3 Transition and Implementation 4.2003 - 9.2004 4 Progress towards 2015 Agenda 10.2004 - 2015 Point of merger

Stage 1: Developing the Vision (1)Option Appraisal: 

Stage 1: Developing the Vision (1) Option Appraisal Dalton Working Group established with terms of reference “To examine ways in which UMIST and The Victoria University of Manchester can work together to achieve world class standing in research, scholarship and teaching across a broad range of academic disciplines”

Stage 1: Option AppraisalOptions Considered: 

Stage 1: Option Appraisal Options Considered Full integration Federal arrangements Trading operations Joint ventures Grassroot Collaboration

Stage 1: Option Appraisal Option Chosen: 

Stage 1: Option Appraisal Option Chosen “The creation of a new Institution, incorporating the two existing universities is unanimously recommended because only this option will meet the needs of a world class 21st century University” Not a merger: double dissolution; equal partners in new University Not just bringing institutions together – major restructuring ‘Merger’ affected mainly engineering, science, management Major restructuring of other areas – 4 Faculties; 23 Schools

Stage 1: Option Appraisal: Perceived Benefits of Chosen Option: 

Stage 1: Option Appraisal: Perceived Benefits of Chosen Option Benefits from creating new institution Close proximity has caused many common disciplines areas to differentiate themselves- hence complementarity Creation of critical mass, especially in science and engineering Efficient use of resources Bringing together of two strong, but sometimes confused, brands Allows a radical rethink of organisation and creates climate for step-change Benefits from restructuring Allows distinction between management of teaching and management of research Revisit traditional disciplinary boundaries

Stage 1: Developing The Vision (2)Initial Consultation: 

Stage 1: Developing The Vision (2) Initial Consultation Decision announced early March 2002 Intensive round of consultation (4 weeks) – through normal channels (Senates, Faculty Boards etc) Dalton Report not published – published 2 page summary – fuelled suspicions; VCs issued statement no compulsory redundancies in first 2 years End of March 2002; broad support for vision – agreed to go to Due Diligence stage

Response to The Vision: 

Response to The Vision Great vision! What is your expertise in delivering the vision? Can you finish what you start? How is this project different to thousands of others like it that have failed? “Do it, but do it in 3 months” v “Do it, but it’ll take at least 5 years” There are benefits, but there are also losses; which are the greater? This is all win for the other party at our expense! You expect us to fall on our swords

Stage 2: Due Diligence and OwnershipIssues: 

Stage 2: Due Diligence and Ownership Issues What is the Business Case? Do the disadvantages outweigh the benefits? What will be upfront cost? Can you finish what you start? Show-stoppers  Risk management Roadmap, Time Nature of the strategy process Being clear about the outcome E.g. new Charter and Statutes Test the outcome and mechanisms to achieve the outcome Be prepared to give way on ‘secondary’ issues

Stage 2: Due Diligence and Ownership-Internal Stakeholders: 

Stage 2: Due Diligence and Ownership- Internal Stakeholders Process: a series of joint reports Academic structures, Estates, Finance, HR, Administrative and Legal Issues, Communication Engagement of staff in process Achieving “Buy In”: a key challenge 2 Vice-Chancellors retiring October 2004; not seen to press own interests Differences in approach at UMIST and Manchester Communications strategy – principle of transparency Written briefing notes, Newsletters, Open meetings, Consultations Reference Groups Key early issue: name of new institution; wide consultation Staff asked for views of each other; high level of respect

Stage 2: Due Diligence and Ownership-External Stakeholders: 

Stage 2: Due Diligence and Ownership- External Stakeholders Outcome of Internal Process October 2002 – reported that cost of merger £70-80m Councils supported continuation provided funds could be raised externally Ensure support of key external stakeholders DfES, HEFCE, OST, MPs, NWDA, Office of the DPM, Treasury, City Council, Business/Industry Need for a consistent message from external stakeholders Usefulness of the external view and/or constraints Need to ensure alignment with ‘policy’ In return for resources

Stage 2: Due Diligence and Ownership-Outcomes: 

Stage 2: Due Diligence and Ownership- Outcomes March 2003 – VCs reported back that had raised £82m (NWDA/HEFCE) UMIST Council insisted that this was not a merger but a double dissolution and the creation of a new entity Structures and processes to be created as ‘fit for purpose’ Not automatic inheritance of legacy structures Sign-off and commitment to principle By Court, Council, Senate Funding bodies: HEFCE, NWDA, OST Point of no return

Stage 3: Transition and Implementation: 

Stage 3: Transition and Implementation Much more detailed work to be done 90 Working Groups, 500 staff The problem of “business as usual” during periods of significant change Need to focus on the future, but not at the expense of the present Governance and management, responsibility and authority Creation of ‘shadow’ structures for new University New University – 4 Faculties and 23 Schools Interim Leadership teams for University, Faculties, Schools Initially (April – December 2003) used existing staff; subsequently some new extern appointments (President, 3 Deans, Registrar and Secretary) Problem of personnel (ensure disinterested) and workload Problem of Multiple Officers

Stage 3: Transition Governance: 

Stage 3: Transition Governance

Stage 3: Transition and Implementation – Major Issues: 

Stage 3: Transition and Implementation – Major Issues Transfer of Staff Academic staff – ‘relatively’ straightforward Administrative Support staff – much more complex coordination across University/ Faculty/ School poor generated excessive transfer and loss of local knowledge Retaining Vision Set of principles devised for working groups (international excellence, devolve to most appropriate level, ‘fit for purpose’) New President and SET devised Towards Manchester 2015 Much sharper definition of vision – realisation ‘merger’ not end Communication, communication, communication

Stage 3: Transition and Implementation - Outcome: 

Stage 3: Transition and Implementation - Outcome On 1st October 2004, VUM and UMIST dissolved; The University of Manchester created On 22nd October HM Queen visited The University of Manchester to present Royal Charter – first University in 21st century to receive Royal Charter Virtually no loss of staff; student applications rose November 2005 PM presented Manchester with THES inaugural award as ‘University of the Year’

Key Factors for Success: 

Key Factors for Success Special factors: History of collaboration Similarity of mission (research-led) and mutual respect Adjacent sites Clarity of strategic vision: needs to be shared Due Diligence phase to mitigate risk; strong project management Communications strategy and transparency Overwhelming support of students (80-90%) Strong external support – backed by resources! Retirement of 2 VCs; more generally creating interim teams that avoid privileging individuals

Major Difficulties Encountered: 

Major Difficulties Encountered Staff Transfer Process New IT systems – especially website

Stage 4: Progress towards 2015 Agenda: 

Stage 4: Progress towards 2015 Agenda Creating the new university is not true measure of success Rationale for merger was to provide a platform for a step change towards a world-class university Towards Manchester 2105 defined what steps Manchester would need to take to deliver a world-class university Based on ‘gap analysis’

Gap Analysis 1: 2001 RAE : 

Gap Analysis 1: 2001 RAE

Gap Analysis 2:Total Research Income (2003-4): 

Gap Analysis 2: Total Research Income (2003-4)

Gap Analysis 3: Esteem: 

Gap Analysis 3: Esteem

Gap Analysis 4 : Unit of ResourceImplications: 

Gap Analysis 4 : Unit of Resource Implications Unit of Resource (UoR) : Total Income / Total Number of Students Manchester needs to grow (UoR) by 50% to match world-class universities Implications of gap analysis: gap between Manchester and (UK) world-class universities not so large that it makes aspiration to close gap infeasible

2015 Agenda: 

2015 Agenda Goal 1: High International Standing 5 Nobel Laureates by 2015; 3 by December 2007 Goal 2: World Class Research Double real external research income by 2015 Double postgraduate and postdoctoral researchers by 2015 Goal 3: Exemplary Knowledge Transfer Annual increase of 20% in the value of licences of IP Goal 8 : Internationally Competitive Resources Improve real unit of resource by 50% by 2015 Triple real international fee-based revenues by 2015

Progress towards achieving 2015 Agenda: 

Progress towards achieving 2015 Agenda Nobel Laureates: Prof. Joseph Stiglitz appointed November 2005; number of others under negotiation; on target Research Income: grew by 12.4 % from 2003/4 to 2004/5 – exceeds target Research Students: no growth 2003/4 to 2004/5 – below target Value of IP licences: grew by 25% 2003/4 to 2004/5 – exceeds target International fee-based revenues: no growth 2003/4 to 2004/5 – below target Overall: although quite early in process – mixed picture identifies areas where we must focus more effort major challenges: growing resource base and improving effectiveness of administrative systems and processes

Research Income: Reducing the Gap: 

Research Income: Reducing the Gap

Conclusions: 

Conclusions I have summarised the key stages in bringing together VUN and UMIST to create a new university: The University of Manchester I have indicated what we believe to have been the factors leading to success and identified some problems we experienced I have outlined some of the measures of success we have set for becoming a world-class university and shown the mixed progress we have made in the first year