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Leadership lessons from the Universities UK Deputy Vice-Chancellor Forum

Navigating a financial and recruitment landscape in turmoil

March 18, 2025, By Jennifer Latino, Senior Director, Research Advisory Services

Last week, I had the privilege of representing EAB at a two-day gathering of deputy vice-chancellors and other senior leaders hosted by Universities UK. This experience not only deepened my appreciation for the challenges facing the higher education sector but also highlighted how the current climate is sparking creativity, experimentation, and collaboration among institutions.

Here are some key themes that emerged from my conversations, along with how EAB stands ready to support senior leaders:

Absent control over all financial and public perception levers, the most strategic leaders are making bold, tough calls and sticking to them

From discussions throughout the conference, it became clear that the most strategic leaders are making bold, tough decisions and committing to them, even amidst uncontrollable external forces. Not surprisingly, financial sustainability emerged as a central concern for attendees. Several leaders emphasised the importance of leveraging ‘soft power’ to influence government policy and counteract the negative public perception of universities that has recently surfaced.

Institutions are also exploring new operational models, but the slow pace of change in higher education puts them at a disadvantage compared to other sectors. The idea of shared services—such as centralising HR or IT functions across multiple universities to reduce costs and streamline operations—was frequently mentioned as a potential game-changer. Some attendees noted that their leadership teams are beginning to consider consolidating with another university as a more viable path forward.

Regardless of the strategy, it’s most important that leadership teams work with a unified vision at the heart of their decision-making, which was a central theme of my session at the conference, titled “Reinvigorating Leadership and Institutional Agility.”

Global and local politics have upended the recruitment playbook, with universities struggling to respond to a ‘buyer’s market’

The changing landscape of student recruitment was a frequent topic of discussion among senior leaders, and the impact of global and local politics cannot be overstated. Some countries are actively discouraging students from studying abroad to retain talent, and U.K. policy rhetoric in 2024 negatively affected international student applications. While there is hope for a potential “Trump bump,” it’s challenging to base an entire enrolment management strategy on such fluctuations. Transnational education holds promise, though cultivating these relationships requires time and investment.

Additionally, the rising cost of living has become an even greater concern than tuition fees. More students are opting to live at home to save money, affecting enrolment patterns and prompting institutions to rethink their student support and engagement strategies. Global demographic shifts also indicate a reliance on more price-sensitive markets. The pressing question remains: are institutions prepared to address return-on-investment concerns?

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    Next steps

    Enrolment strategy is at the heart of EAB’s latest research initiative, and we are eager to discuss this topic with senior leaders. Please email [email protected] to schedule a research call.

     

    In the meantime, take advantage of EAB’s Market Insights service to assess program viability and market alignment for both domestic and international students.

Poor data leads to poor decisions, and resistance to modernising systems only leaves us further behind in the race to stay relevant

Despite a widespread belief in the necessity of digital transformation, many universities continue to grapple with legacy systems and technical debt. Confidence in driving change remains low, and convincing staff to embrace even minor updates is a significant challenge. However, leaders collectively agreed that embracing change is the only viable path forward.

Quality data is critical for effective decision-making. While there is an understanding that data should inform strategy, inconsistencies and outdated systems make it difficult to uncover meaningful insights. Standardising systems across institutions could enhance benchmarking and decision-making, but this shift would require a move toward more centralised service models.

Artificial intelligence (AI) emerged during discussions as a potential lever for transforming both administrative processes and learning models. While enthusiasm for AI’s potential is high, leaders are uncertain about how to implement it effectively within universities while addressing ethical considerations and potential job displacement.

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    Next step

    Leverage EAB’s AI Maturity Model to assess your institution’s current state of sophistication in areas where AI could have the most transformative impact. Afterward, debrief your results with your strategic leader and an EAB expert who can help craft a plan to support your AI aspirations.

Final thoughts

Every conference serves as a pulse check on industry trends and the challenges we must confront. I left this gathering reminded that while technology and strategy are crucial levers for success, the future of our institutions relies heavily on strong leadership—especially in steering organisations that may sometimes resist change.

Universities are not businesses, nor should they be; however, adopting a more financially conscious approach to operations is essential. Additionally, sector-wide collaboration is vital, and Universities UK continues to lead efforts to unite institutions in addressing major challenges and advocating for government policies that benefit all. Encouragingly, there remains a high level of enthusiasm for networking and learning from those who have successfully navigated these issues—demonstrating that collective wisdom is one of the sector’s greatest strengths.

Jennifer Latino

Jennifer Latino

Senior Director, Research Advisory Services

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