EFMD Annual Conference 2014: Plenary III – Financial Models for Educational Institutions

IMG_7647

Thomas Estermann began by talking about trends in finance in higher education. According to Mr. Estermann, performance based funding is now widely used but there are different ideas on what exactly the performance should be. The number of Bachelor and Masters Students is very important, as is the number of international students. What happens if the indicators change, especially if more than 50% of funding comes from public funds? Usually the indicators remain stable and there is also a dialogue between the different actors before they are changed.

Performance contracts are often used in the Scandinavian countries and are taken very seriously. There is a good deal of healthy peer pressure to ensure that they meet the targets. Funding for Excellence is widely used in different European countries such as the Research Excellence Framework (REF) in the UK. Germany and France give the largest amount of funding (3Bn euros for the period covered).

GlobalEd_49px

Access all GlobalEd conference articles here.

 

Comparing English and Austrian Universities M. Estermann noted that the latter got more public funding, while English universities got more from fees and companies. He mentions that there is no one right answer in this or to know what is the right balance. As well as that, it is also a social question with different answers across Europe.

estermann2

Estermann: English universities got less from public funds.

Efficiency in the use of funding is becoming a more debated question right across Europe. Philanthropy now accounts for 4% of funding across Europe and this may grow in the coming year. There are also big differences in treasury management and strategic investments between universities.

Patched funding schemes have become increasingly successful in England and Wales in particular. Here the government will match funds found from other sources. This encourages a more dynamic approach to funding. In some systems, an inbuilt support for getting this system is active.

The framework conditions and the autonomy of the university is also an issue. The universities with more autonomy have a more diverse selection of staff and a better ability to find other funds.

Universities with stronger leadership are also more successful in bringing in funds. Universities should also integrate income diversity into the overall strategy of the company. They should identify the strengths and weaknesses of the actual university brand. There should be an investment in leadership, management and people, with a focus on communicating their strategy both internally and externally. They should also have proved internal incentives. M. Estermann also cited a banker that was often asked by potential investors where they could put their money but didn’t know what their local units do.

 

Thomas EstermannThomas Estermann

Thomas Estermann serves as Head of Technology Services of DocumentServices AG. Mr. Estermann has headed Development since mid-1998 and various IT platforms for the processing of data and documents were developed and productively introduction under his leadership.

 

 

 

See also:

 

Looking back at the Transcontinental program, one year after…

Celia Laurent After the Transcontinental program, I joined Societe Generale CIB for a 9-month internship in Paris in the coverage department (develop and manage strategic relationships with large corporate clients). I’m currently doing a second 6-month internship at Natixis in the credit research department as a fixed income analyst assistant

 

Peter Drucker Forum 2013: “Rising Above Inter-Domain Complexity” by Roger L. Martin

Roger L. Martin

During the last session of the 5th Global Peter Drucker Forum, Roger Martin, Academic Director at the Martin Prosperity Institute of the Rotman School of Management, began his talk with a Scientific American of 1868 showing the telegraph and railroads, which says that in no other period had there been so much transformation and change.

DUKE UNIVERSITY IN DURHAM NC, USA

Candice Baroux & Pauline Delubac, graduate students from GEM, share their experience at the Duke University in Durham NC, USA. The two most important things to do before leaving are to get a visa and find an accommodation. Candice Aldrich, our academic advisor, will give you all the information you need for the process of getting your visa. We have to warn you that the process to get it is quite annoying and expensive (around 300€, and you have to go to Paris for that…). You have a lot of administrative paperwork to fill in, which turned out to be time consuming. We advise you to fill in everything as soon as you have all the information so that you can get your visa faster

Leave a comment

Filed under Business Schools, E-learning, Economics, Finance, Higher Education, Management, Strategy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s