How The University of Helsinki Turned a Funding Crisis into Lasting Administrative Efficiency

Higher education leaders know that change isn’t just difficult, it’s context-dependent. EAB’s research confirms that the most effective change strategy reflects an institution’s distinct context. With this in mind, EAB has gathered numerous case studies of institutions that succeeded with organizational transformation, each in its own way.

Consider the University of Helsinki. In 2015, federal austerity measures reduced funding to the Finnish university sector by €450M over five years, including a €106M (15%) cut to Helsinki’s budget. Nearly half of that loss landed in a single year.

Rather than making piecemeal cuts, Helsinki’s leaders saw an opportunity to fundamentally rethink administrative services. The result was a rapid but carefully structured move to a shared services organization called University Services. Read on to learn about University Services and what your institution can learn from Helsinki’s success.

Helsinki’s service redesign: A rapid transformation followed by continuous improvement

What did Helsinki change?

In just a few months, Helsinki consolidated 55 independent administrative units into a single structure, University Services. This move enabled them to reduce administrative headcount by 27% (from 1,100 to 800) and focus on streamlining administrative processes within the new system.

Transitioned to fewer, more specialized roles

Previously, many staff members split their time across several functions. In the new model, staff were expected to have expertise in a single area. During the transition, all staff had their contracts terminated and were required to reapply for new roles. In some cases, external staff were hired to meet the more specialized requirements of these roles.

Implemented Lean process improvements

Helsinki fostered a culture of continuous process improvement and formalized these expectations with Lean coaches and coordinators. Staff feedback was collected regularly and incorporated into service design adjustments.

Improved online accessibility for service requests

Helsinki ensured that the service request process was fully digitized and eliminated duplicative technology platforms from the previous structure. Helsinki is also consolidating 150 unique customer service channels into a single user interface for all University Services.

How did Helsinki implement changes?

Campus conditions preceding transformation

EAB identified five replicable characteristics that enabled Helsinki’s success.

1. Unwavering leadership mandate

From the start, the board and senior leadership maintained a united front, galvanized by the existential threat posed by government funding cuts. While the leadership mandate was clear and uncompromising, the institution avoided prolonging uncertainty by committing to dismantling and establishing the new shared services organization within just four months.

2. Support for middle managers

Helsinki recognized that layoffs created substantial strain on middle managers. Leadership brought in external trainers to prepare supervisors for sensitive conversations with affected employees. They also held regular three-hour sessions where managers could voice concerns.

3. Phased process improvement

Leaders delayed process improvements until the new organizational structure was in place, reducing managers’ workload. This also ensured that the only staff who contributed to building new processes were those who remained after the redesign and therefore invested in long-term success.

4. Incorporating staff input

Helsinki formed planning groups for each sector, including faculty, central administration, and departmental staff, to design the new University Services structure. After launch, the university continued to gather feedback regularly, both informally and through surveys.

5. Prioritizing user feedback

The head of administration meets annually with each dean to discuss what’s working, what isn’t, and what changes are needed. Twice a year, the head also presents University Services’ progress to all deans and directorates, creating a forum for collective feedback.

Results of Helsinki’s transformation

Want to learn more about organizational transformation?

Helsinki’s journey shows that challenging circumstances can be leveraged to create long-term administrative resilience. Their model, rapid consolidation followed by phased improvement, offers valuable lessons for institutions facing financial or operational pressures.

To learn how to get your institution’s organizational transformation off the ground, explore EAB’s other organizational transformation case studies and review EAB’s five essential change management lessons for achieving lasting organizational transformation.