motivators for the tne review - aiec 2017 | aiec...

1

A Managed Approach to TNE Disengagement

AIEC, October 2009

Chair:

Dr Anna Ciccarelli

Pro Vice Chancellor & Vice President: International & Development

Motivators for the TNE Review

In 2007, we had a new VC who:

• had his own vision

• was (and still is) examining everything we do, and why, in

that context

SMG thus recognised the need to assess TNE to:

• understand its real value to the University – financial and

otherwise

• ensure we were making the best use of resources

• ensure programs / partners reflected our priorities and

future positioning

Income significant – but what were the true costs and the

opportunity costs?

Australian International Education Conference 2009 www.aiec.idp.com

2

TNE has made an important contribution to UniSA:

• Marketing the University’s brand and profile offshore

• Very significant international alumni

• Significant revenue contribution

• Size and scale when it mattered

However UniSA also needed to:

• Understand TNE profitability at cohort, program, School,

Division and University level

• Assess the strategic benefits of particular programs and

partners

• Acknowledge the diminished appetite for risk in the current

environment

General Principles

• TNE needed to give UniSA a net benefit in branding & positioning

(strategy, viability and quality)

• TNE needed to be financially sustainable for the School, Division

and University

• Needed to recognise our vulnerability to the movement of the AUD

• Compliance (Australian & in-country) including degree recognition

was not negotiable


3

Strategic Re-positioning of the University

• New Horizons – aspirations for repositioning the University

• Need to raise profile through national/international research rankings and

international research links and teaching quality

• Greater reliance on FPOS fee income:

investigate new models for FPOS onshore programs

increase efforts to secure Government sponsored scholarship students

increase fee paying international HDR

• We will retain our commitment to international engagement but it will

change in emphasis over the coming years

• New VC, New Horizons, TNE review in 2007 with a focus on

strategy, profitability, quality

• Decision in June 2008 for:

– Phased withdrawal

– Retaining a profile (and core capability) in Malaysia, Singapore and China

– Final intake for most terminating programs in 2009/10

– Continuing programs to be reviewed in 2011


4

Transnational Financial Modelling

Stacey Mills

Business Analyst to the Executive Director and Vice President Finance and Resources

AIEC, October 2009

3.6%

9.1%

4.2%4.8% 7.7%

12.4%

1999 2000 2001 2002 2003 2004 2005 2006 2007

TNE

FPOS

FPOS & Transnational Revenue 1999 - 2007


5

2008 TNE Profile

Full Consolidated

Countries 6 4

Partners 19 6

Divisions 4 3

Schools 14 8

Programs 42 25

Students (pro-rated) 4,990 4,066

2008 TNE Profile (Financial Model) 2008 Revenue by Currency

HKD30%

CNY4%

USD1%

SGD45%

AUD3%

MYR16%

LKR1%

HKD

CNY

USD

SGD

AUD

MYR

LKR

Hong Kong Dollar (HKD)

Chinese Yuan Renminbi (CNY)

United States Dollar (USD)

Singapore Dollar (SGD)

Australian Dollar (AUD)

Malaysian Ringgit (MYR)

Sri Lanka Rupee (LKR)


6

Revenue Profile

Currency

Partner

Country

Division

School

Program

Profitability

Partner

Division

School

Student Administration

ProgramAdministration

Partner Relationship

Management

Support Services

Program

Various Cost Pools

Expense Profile

Cohort

Program

School

Division

CorporateUnits

Cost/EFTSL

Cohort ContributionProgram ContributionSchool ContributionDivision ContributionDirect TNE Corporate CostsNet ContributionFull Cost Share Corporate O/headsNet Profit (full cost)

Financial Modelling

TNE Disengagement Project Management

AIEC, October 2009

Raju Narayanan

Manager, International Business


7

• Key stakeholders

– Students

– Partner

– External stakeholders

• Impact of decision

• Contractual obligations

Project Planning Project Management

• Key components

– Operational

– Quality and strategy

– Commercial

• Risk management

• Recording and reporting


8

Project Management Overview

Quality and Strategy

• Teaching out planning and

implementation

• Cost reduction, financial

planning and

implementation at Division

level

• On going risk management

• Partner relationship

management

• Legal and compliance

management

• Quality systems &

processes and risk

management

• Brand management

• Revenues collection and

profitability

• Commercial and debtors

risk management

• Financial processes and

systems oversight

CommercialOperations

Division Disengagement

Committee

Division Executive

Transnational Sub-group

Transnational Management

Group

Commercial Support Manager

International Quality Steering

Group

Pro Vice Chancellor, Division Pro Vice Chancellor,

International and

Development

Executive Director, Finance

Senior Management Group

Project Process

• Phases

– Consultation

– Communication

– Planning teaching out timelines

– Teaching out implementation

• Ongoing cost/revenue management

– Completion of teaching out

• Closing out programs


9

Project Timeline

Dec-07 Dec-11

Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

Phase 1

· Profitability Analysis and Decision

· Planning and Consultation

Phase 2

· Termination notices

· Continuations

Phase 5

· Final Intakes· Completion of teaching out· Closure of Programs with Academic

Board

Phase 3

· Teaching Out Planning

· Commercial – Plan cost Reduction at Division and Centre

· Continuing Programs and Partnerships

Phase 4

· Teaching Out· Cost Reduction

Transnational Exit Quality Framework

and Risk Register

AIEC, October 2009

Tania Beard

Manager, Quality and Compliance, UniSA International


10

Exit Quality Framework

• Quality assure the implementation of the phase-out

decision

• Transnational Management Group

• UniSA ISO certified Transnational Quality Framework

• Transparent intra-web based set of processes and

checklists

• Ensuring

– consistency of decision making

– student communication

– internal reporting

Development of Exit Framework

• Representatives from

– Academic Divisions including transnational administration

– Finance Unit

– Legal Services

– Compliance within UniSA International

• Division of Business led the development


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Component Parts

• Exit Governance Framework

– 5 phases

• Planning and Consultation

• Due Diligence Review and Termination Notices

• Program, Cost and Marketing Management

• Implementation of Teaching Out Strategy

• Completion of Teaching Out

• Exit Timeline

• Program Exit Checklist

• Student Letter and Study Plan templates

• Internal reporting templates including:

– Student Progress Template

– Progress Report template by program

Website View


12

Records and Data Capture

• Quarterly progress reports by program

• Transnational Management Group minutes

• Student enrolment reports

• Transnational Exit Risk Register

Transnational Exit Risk Register

• Identification of key risks including

– student satisfaction

– partner engagement

– UniSA staff engagement

– tail of students

– achievement of business outcomes

– professional and in-country program recognition

– breaches of contract


13

Implementation of TNE Exit

Strategy in the Division of Business

AIEC, October 2009

Associate Professor Vicki Feast

Dean: International, Division of Business

• PVC & Division Executive involvement/fit with University vision

(strategy, quality, financial)

– Opportunity costs of academic work

– Improving research profile

• Business Division was a major contributor to decision, framework and

details

• Scale of TNE in Business

– 4 main countries: China, HK, Singapore, Malaysia

– 8 main partners – mix of Commercial and University

– 4,810 student enrolments in 2009

– Revenue – approx 55% of UniSA TNE Revenue

– Programs at all levels – UG, MBA (English and Chinese), DBA, PhD

Business Division perspective


14

• Division of Business was the most affected by the exit

• Other Divisions made different decisions

• Recent AUQA visit – scrutiny, queries directly from partner ‘in country’

visits

• Role of Transnational Support Services

– centralised administration is very efficient

• Establish a Transnational Disengagement Committee chaired by Dean:

International

• Timeframes

– Varies from 1.5 years to 2013 to ‘teach out’

– Student ‘tail’ will be much longer

– Failed students managed case by case & with special strategies

TNE in the Business Division

• Preparing the Program Exit checklists – 22 steps

• Providing the letters

• Providing the progress reports

• Student welfare at the core

• Managing the financial impact

– Revenue replacement

– Cost controls not minimisation

• Doing everything right

– minimise reputational damage

– academic integrity balanced with pragmatism of exit

Implementing the framework


15

• Follow through every step eg HK – need to provide individual study

plans for 2000+ UG students

• Partner reactions

– Varied according to size, status, type of institution

– Financial – some smaller partners more adversely affected

– New partner relationships – assist ex-partner with new partner

• Student reactions

– less then expected after the announcement

– very few ‘complaints’ but can be significant

Exiting with quality

• Business Division is left with two main partners in the medium term

(UG in Malaysia, PG in China)

• Implementing strategies to replace PhD students (almost 50% of

PhDs were TNE)

• Dealing with the impact on internationalisation of MBA

• Ready for the long haul with both teach out (already had last intakes

for all but one partner) and tail

• Must maintain engagement with all stakeholders

– Students

– Partners

– Alumni

What now?


16

University of South Australia

Experience. The Difference


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