Report 98/07

Analysis of 1997 strategic plans

Executive summary

Purpose

1. This document provides feedback on the aggregate picture revealed by institutions' strategic plans and forecasts of student and staff numbers, submitted in 1997.

Key points

2. The strategic plans reveal that:

a. Nearly all institutions have developed learning and teaching strategies, which respond to the needs of an expanded and diverse student population. They emphasise the development of active, independent learning skills and make use of a range of new technologies in resource-based delivery. Institutions are also providing rewards for excellence in teaching and showing commitment to staff development and teacher accreditation.

b. Institutions continue to adopt a wide range of measures to widen participation, which respond to demand from students and employers. These include links with other educational and community organisations, flexibility in the delivery of learning and teaching, and targeted student support and provision of facilities.

c. Nearly all institutions have developed strategies to strengthen research. These include emphasis on staff recruitment, development and reward; management structures to plan, monitor and review research effort; collaboration with other institutions and with users of research; and enhancement of the physical infrastructure.

d. Institutions are involved in a wide range of activity to meet the educational and training needs of their region, contributing to regional economic prosperity and social and cultural activity. They also have a wide range of international links to strengthen research and enhance student recruitment and experience.

3. The student and staff number figures reveal that higher education institutions are forecasting:

a. To recruit slightly above their overall Maximum Aggregate Student Number (MASN) in 1997-98.

b. Larger growth in areas unaffected by the MASN policy: overseas, postgraduate and part-time students.

c. Reductions in total FTE staff numbers of some 3,600 (1.8 per cent) during the planning period.

Action required

4. We are consulting separately on our future requirements for institutions' strategic plans and the timing of their submission. No responses to this report are required.

Background

5. Circular 9/97, 'Strategic Plans and Financial Forecasts' asked institutions to provide the Council with copies of their strategic plans, estates returns, and detailed financial forecasts covering the period 1995-96 to 2000-01. We are publishing separate summary analyses of the sector's financial position and of the estates returns. This document provides feedback to institutions on the aggregate picture revealed in the strategic plans and the forecasts of student and staff numbers.

Strategic plans

6. We analysed the strategic plans to identify both areas for discussion with individual institutions, and sector-wide developments and trends. The institution-specific information helps us to assess the coherence and integration of the strategies of individual institutions, and their consistency with national policy objectives; to assess the prospective financial health of those institutions; and to consider specific institutional proposals. This document is concerned with developments and trends across the sector as a whole.

7. We expect institutions to produce strategic plans as a matter of course for their own purposes. We do not approve these plans. Circular 9/97 did, however, ask institutions to provide information on specific issues:

• learning and teaching strategy
• approaches to access and widening participation
• research strategy
• local and regional developments
• collaboration
• the reform of initial teacher training (ITT).

The following analysis concentrates on these issues.

8. Proportions and percentages given in this analysis are indicative. An element of interpretation is inevitable, because of variations in institutions' reporting practices and in the amount of evidence provided.

9. Not all developments are relevant to the full range of higher education institutions. This document therefore refers to different classifications of institutions: those formerly funded by the Universities Funding Council (UFC) including the separate schools and colleges of the University of London and the two universities in Northern Ireland; and those formerly funded by the Polytechnics and Colleges Funding Council (PCFC), which include former polytechnics, general colleges and specialist colleges. Within these broad classifications, the institutional missions are diverse.

10. Institutions submitted their strategic plans before the Dearing Committee published its report. The report and subsequent Government responses are likely to prompt changes to institutions' strategies, recruitment plans and expectations.

Learning and teaching strategies

11. Nearly 90 per cent of institutions referred to their learning and teaching strategy. Discussion focussed on:

a. Committees and management structures to develop, implement and monitor the learning and teaching strategy, and quality assurance procedures.

b. Innovations which support the shifting emphasis from teaching to learning. These included student-centred approaches, which encourage independent learning skills, and the use of IT and multi-media technologies in assessment and resource-based delivery.

c. Staff development, including teacher accreditation, and rewards.

d. Flexibility in mode of delivery and customised programmes of study.

e. Encouraging life-long learning, and developing employment and transferable skills.

12. The plans reveal how institutions have developed strategies which respond to the needs of an expanded and diverse student population, and which enhance the student experience. These strategies include:

a. Programmes that provide a balance between, for example, independent learning and large and small group teaching, and which take account of preferred learning styles.

b. Quality assurance systems which make increased use of student evaluation and feedback.

c. Progress monitoring systems to help identify students who are having difficulties early, allowing staff to target additional support.

d. Training for all in maths, language and IT skills, as well as in study skills which foster active, independent and reflective learning and encourage student-led work.

e. Access to a range of paper and IT-based learning resources and network access to staff.

13. Seventy per cent of institutions described their increasing use of new technologies to deliver learning and teaching. Discussion covered:

• developing and implementing information strategies
• developing libraries and learning resource centres
• extending IT facilities, including into student residences
• developing local and metropolitan area networks and providing remote access at associate colleges
• exploiting JANET, SuperJANET, and the World-Wide Web
• using CD-ROM, video-conferencing, multi-media and computer-aided learning materials.

Some 20 per cent of institutions stated that they were looking to incorporate the outcomes of the Teaching and Learning Technology Programme (TLTP) projects in their courseware.

14. Over 40 per cent of institutions described how they ensure that innovations are embedded and sustained in learning and teaching practice. As well as providing physical resources, most had management structures and staff groups to oversee the delivery of specific objectives and disseminate good practice. In this context, a number of institutions referred to their involvement in our Fund for the Development of Teaching and Learning (FDTL). Institutions also emphasised the importance of staff training in the use of new technology, and links between staff appraisal and development.

15. Many institutions described the implications for staffing of their strategies. Many are developing learning and teaching strategies within a context of forecast reductions in staff (see paragraphs 50 to 52) and increasing student:staff ratios. To support the greater emphasis on resource-based learning, institutions are giving priority to staff development and training in the use of IT in teaching, ensuring that staff are familiar with a range of materials and methods and can integrate teaching materials involving electronic communication. A small number of plans detailed the creation of senior posts or units to oversee the delivery of the learning and teaching strategy, and of learning resources.

16. Nearly 30 per cent of institutions described how they reward teaching excellence, through promotion, awards and prizes. Some institutions have created new senior academic posts and fellowships recognising those who have achieved excellence in teaching. Some have introduced peer review systems to evaluate teaching and identify good practice. A small number offer study leave to encourage innovation in learning and teaching. One third of institutions also referred to teacher accreditation; many encourage academic staff to study for a Certificate, Diploma or Masters in Education, or in Teaching and Learning in HE. In some cases such courses are compulsory for new staff. A small number of institutions also indicated that they were aiming for the Investors in People (IIP) award.

17. Over 60 per cent of institutions discussed their plans to provide more flexible ways to study, through more part-time, open, distance or work-based learning programmes. This was facilitated by modular course structures and the use of new technology.

Approaches to access and widening participation

18. References to access and widening participation were similar in both content and frequency to those in the 1996 submissions. Over 60 per cent of plans included clearly articulated access policies, whose aims were of three broad types:

a. To increase participation in higher education among the local community.

b. To promote equality of opportunity and the participation of under-represented sections of society, classified by ethnic origin, gender, age, disability, religion or social background.

c. To improve access for those without standard entry qualifications.

19. About 20 per cent of institutions included in their plans their assessment of demographic trends and changed student profiles. Different institutions identified different factors which would affect recruitment. These included the upturn in the numbers of school leavers at the turn of the century, and increasing demand from mature students, particularly for part-time and postgraduate taught provision.

20. Monitoring of applicants' profiles and progression rates, and market research, all inform institutions' marketing and admissions strategies. One third of institutions - a slight reduction compared with last year - gave specific targets for widening access to particular groups. Marketing strategies included:

a. Use of a variety of media, including Web sites, press, radio and television advertising.

b. Links with other educational institutions and organisations, particularly to encourage recruitment from the local or regional community. These included regional networks involving schools and FE colleges to facilitate pathways to HE, often with a focus on under-represented groups; compact and outreach schemes with schools to encourage students from disadvantaged backgrounds; and links with community organisations to encourage recruitment from particular under-represented groups.

c. Expanding advice for applicants seeking places through clearing.

d. Open days and evenings.

e. Creating a 'brand' image for the institution.

21. Most institutions described measures to encourage wider access to HE. Besides the marketing strategies identified above, these included:

a. The provision of courses by associate and franchised colleges to bring HE into new geographical areas, sometimes involving remote access to institutions' IT networks.

b. Admissions policies designed to promote equal opportunities. For students without traditional entry qualifications, this included assessment of potential and motivation, and accreditation of prior (experiential) learning.

c. More flexible delivery of learning and teaching, particularly to assist those with work or family commitments. This included modular course structures and credit accumulation and transfer schemes, with flexible entry and exit points and progression routes; more part-time, distance, open and work-based learning; extensions of the teaching day and week into the evening and weekend; and summer schools and block-release courses.

d. The provision of continuing and liberal adult education, foundation and access courses and continuing professional development, designed to recruit mature students without standard academic qualifications. There were also language courses for students for whom English is a second language.

e. Improving student support. This included providing nurseries, advice through welfare offices, bursaries and scholarships, and better facilities and physical access for those with learning difficulties and disabilities.

22. Nearly 30 per cent of institutions outlined their plans for students with learning difficulties and disabilities. A similar proportion referred to their disability statements, provided in response to the Disability Discrimination Act. Discussion focused on the accessibility of buildings, provision for those with visual or hearing difficulties or dyslexia, the development of IT and multi-media learning aids, staff training and the work of welfare and disabilities officers.

23. Twenty per cent of institutions highlighted barriers to access. These included:

a. Financial hardship of students, particularly in London, and the financial burden on mature students and those with family responsibilities.

b. Funding arrangements which restrict student numbers (both through the Maximum Aggregate Student Number (MASN) and intake targets for Initial Teacher Training (ITT) and Medicine) and do not allow for the higher risk that some students will not complete.

c. Financial and other difficulties in making buildings accessible to all students.

Research strategies

24. Some 90 per cent of plans set out institutions' strategies for research. These focused on maintaining or enhancing research strengths in individual departments or, particularly among former UFC institutions, across institutions as a whole. Many specified targets for the next Research Assessment Exercise (RAE), the generation of grant and contract income, addressing Foresight and EU Framework priorities, and the proportions of research-active staff. A number of former PCFC institutions emphasised the importance of research in underpinning learning and teaching. Some colleges discussed the strengthening of research in the context of acquiring research degree-awarding powers and, ultimately, a university title. Institutions also considered the balance between basic, strategic and applied research and consultancy.

25. Strategies for strengthening research included:

a. Recruiting and developing research active staff; offering incentives, rewards, sabbaticals and research fellowships; recruiting research assistants and support staff; and expanding postgraduate research student numbers and the numbers of staff with supervisory experience.

b. Developing mechanisms to monitor and review research performance, such as through research committees or the appointment of a research director. Many institutions have departmental or faculty research strategies to direct research effort; these frequently involve monitoring and reviewing individual staff research plans. Some institutions have developed performance indicators or used internal or external peer review to monitor progress.

c. A third of all institutions, including over half of those in the former UFC sector, have, or plan to establish, an institution-wide graduate school. A few have a number of faculty-based graduate schools or centres.

d. Collaboration with users of research and other organisations, including the development of science parks.

e. Enhancing and improving use of the physical infrastructure, such as equipment and research laboratories. This includes targeting external sources of funding for infrastructure and providing facilities for interdisciplinary work.

26. Some 60 per cent of institutions, including 85 per cent of former UFC institutions, described their plans to develop interdisciplinary or multi-disciplinary research. This represents little change to the plans submitted in 1996. Nearly half of all institutions, including two-thirds of former UFC institutions, described their strategies and incentives for inter-departmental research collaboration. These included graduate schools, cross-departmental research centres and institutes, and management structures.

27. Most plans described institutions' strategies for research collaboration and the sharing of facilities:

a. Over half of all plans referred to research collaborations between institutions, nationally and internationally. This compares with 30 per cent last year. Such collaborations included cross-institutional research centres and institutes.

b. Over half of all strategic plans discussed research collaborations with other organisations. These included regional, national and international bodies from commerce and industry, charities, the professions and the public sector. Activities included programmes such as LINK and Teaching Company schemes, and Research Council and EU programmes.

c. Very few plans described arrangements for interdepartmental sharing of equipment and facilities, although, as already noted, there was considerable discussion of interdepartmental research centres. However, over 20 per cent of plans described arrangements for sharing research facilities with other institutions.

28. As last year, there was considerable evidence that Foresight priorities are influencing institutions' research and postgraduate training strategies, particularly among former UFC institutions and former polytechnics. Many institutions identified those Foresight areas in which they are active and are looking to prioritise research effort. Foresight influences some institutions' internal distribution of research funding, to support selectively areas of national priority and institutional strength and to pump-prime interdisciplinary research initiatives. Foresight also continues to influence curriculum development, particularly at the postgraduate level. This included training in research skills and courses to support some of the subject-specific priorities.

29. We asked institutions which received a 5* rating in the 1996 RAE how they were using the additional premium to preserve world class research. Many are ensuring that their internal distribution of research funds reflects income from our quality-related research (QR) allocations. Half the institutions concerned were using the additional premium to maintain and enhance the departments' physical infrastructure, including equipment. Half were also looking to recruit additional research staff, or extra teaching and support staff to allow the research-active staff more time for their research. A small number were looking to expand postgraduate research numbers, including through university scholarships.

Local and regional developments

30. Some 90 per cent of institutions described their local or regional role. This is an increase compared with last year. Some general colleges sought to raise their regional profile to support aspirations to university status. However, for most institutions, discussion focused on providing education and training, and contributing to the economic, social and cultural development of the region.

31. Three-quarters of institutions, particularly those in the former PCFC sector, discussed their activities in meeting the educational and training needs of their region. Some institutions aim to be the main source of HE provision in their region and have developed a number of strategies to promote recruitment from the local or regional community (see paragraph 32). Others, particularly some former UFC institutions and specialist colleges, emphasise their roles as centres of excellence, recruiting nationally or internationally. However, their continuing education provision is targeted more regionally.

32. The main activities identified by institutions in meeting regional education and training needs were:

a. Widening access for the regional community. Measures adopted included outreach schemes, compacts, and progression routes through links, associations and franchise arrangements with schools and FE colleges, or involving their own FE provision. A small number of institutions mentioned college-based 'outposts' where HE is delivered extensively through IT network links.

b. Increasing flexibility, with more part-time, distance and work-based learning. Modular courses and credit transfer schemes, including the accreditation of prior learning, facilitate this flexibility.

c. Developing programmes to meet demand from employers and students. Largely this involves expansion of continuing (vocational) education and professional development, collaborating with employers and professional bodies. Some institutions also offer courses addressing the interests of particular sections of their local communities, such as ethnic or religious groups.

33. Over half of all institutions described their provision of continuing vocational education and professional development, and commitment to lifelong learning. Many are delivering this provision through work-based, distance and open learning, including the use of new technologies. They are also working with employers, training and enterprise councils (TECs) and others to provide students with transferable or employment-related skills.

34. Over half of all institutions, especially multi-faculty institutions, described how they contribute to regional economic prosperity. Discussion focused on:

a. Institutions' role as major employers and consumers, attracting people and resources to a region. Some have quantified their impact on economic activity.

b. Meeting the education and training needs of local employers, particularly to support small and medium enterprises.

c. Fostering technology transfer and collaborative research with industry, for example through the development of science or business parks and through Teaching Company schemes.

d. Involvement with local business communities and representative bodies, such as chambers of commerce and industry, local authorities, training and enterprise councils and development agencies. A number of institutions are involved in regeneration projects, promoting their regions in partnership with others.

e. The plans indicated that nearly half of institutions have received EU funding - from the European Social Fund or the European Regional Development Fund, for example. Over a third are seeking National Lottery/Millennium funding, largely for sports or arts facilities. More than 10 per cent are involved in projects funded by the Single Regeneration Budget.

35. Over 60 per cent of institutions, and a greater proportion of former polytechnics and specialist colleges, described how they contribute to social and cultural activity in their region. This included:

a. Making available sports facilities, libraries, museums and galleries, and staging plays, concerts, exhibitions and lectures for the wider community. Some institutions are involved in regular arts festivals in collaboration with local arts and educational organisations. Others are looking to develop arts and media centres.

b. Providing continuing education courses, workshops and summer schools.

c. Maintaining listed buildings, landscapes and the quality of the environment.

d. Voluntary community work by students and others.

36. All these activities are marked by extensive collaboration with a wide range of other institutions and private, public and voluntary sector organisations. Ninety per cent of institutions described such links, an increase compared with last year. Collaboration in research and the sharing of research facilities is described in paragraph 27. Institutions also described other collaborations:

a. Seventy per cent of institutions, including virtually all former polytechnics, described a range of links and relationships with FE colleges in franchising out provision (commonly sub-degree courses), widening access, and encouraging progression routes into HE. These relationships range from individual programme developments, through accreditation and association, to prospective merger. Some institutions are looking to include more colleges in regional networks, sometimes involving credit systems which span the full range of post-16 education.

b. Many described areas of co-operation and collaboration with other HE institutions in validation arrangements, joint programme development and the sharing of libraries, and sports and student facilities.

c. Nearly half of all institutions, including some three-quarters of general colleges and former polytechnics, referred to their links with TECs. Some 30 per cent referred to their links with regional government offices. These, and other links with employers, professional and public bodies such as the National Health Service and local authorities, seek to address needs for vocational training and a range of economic development programmes.

d. Institutions are also working with a range of other bodies, such as community and voluntary organisations and religious bodies.

37. Over 80 per cent of institutions described their international links. Often an international or European office co-ordinates these links, which can involve significant numbers of institutions world-wide. Staff may also be members of or advisers to a range of international bodies and committees, informing various international policy developments. The activities which the links support include:

a. Recruitment of EU and overseas students, some of whom participate through distance learning. A small number of institutions discussed overseas franchise and validation agreements, particularly in the Far East. Institutions are also looking to facilitate credit transfer, for example through the European Credit Transfer System, and offering joint degree programmes with institutions abroad.

b. Participation in European mobility programmes such as SOCRATES, and offering students other opportunities for study placements abroad.

c. Collaborative research projects and staff exchanges.

d. Strengthening bids for EU and other sources of funding.

Use of strategic plans to inform HEFCE funding

38. Circular 9/97 'Strategic Plans and Financial Forecasts' stated that we intend to refer to institutions' strategies when considering bids for special initiative funds, and when allocating student numbers under the new funding method for teaching. Of the submissions received in 1997, virtually all gave a clear understanding of institutions' plans and developments over the planning period. A small number were less clear because they were interim plans pending major review, or because they were too broadly stated. Many institutions indicated that their plans might change in the light of the Dearing Report and the Government's response to it.

39. A third of plans described academic developments for which institutions explicitly stated they would seek our support. Most of these relate to additional student numbers and cover the full range of Academic Subject Categories (ASCs). A small proportion concern new campus developments. Others relate to diversification out of ITT to compensate for the effects of shorter ITT course lengths. We expect to allocate approximately 1,100 places in 1998-99 to support such diversification. A small number of institutions also referred to bids for restructuring funds, particularly connected to mergers.

40. Of these developments, over half appeared consistent with national policies and priorities. These included expansion in science and technology; expansion in part-time numbers; changes resulting from the Tomlinson review of medical education in London; or change in response to shorter ITT courses. One-third of the developments sought to address local or regional needs. This included new campus developments, growth to support aspirations to university status, and other demand for new provision in a region. Institutions argued that about one-fifth of the developments were innovative, in terms of course content or delivery, through collaboration or in creating an institution with a unique profile.

41. Up to a quarter of institutions referred to our new funding method for teaching. These were primarily specialist colleges, and those whose existing funding differs from the standard resource level by more than 5 per cent. Many of these institutions recognise the implications on funding and student numbers of moving towards the standard, and are planning accordingly. However, at the time of their submissions, there remained considerable uncertainty, particularly among specialist colleges, about how they will be affected.

Forecasts of student and staff numbers

Student numbers

42. Tables 1 and 2 summarise forecast student numbers in England and compare them with Maximum Aggregate Student Number (MASN) allocations and the 1996 DfEE Budget assumptions.

43. They show that:

a. Higher education institutions (HEIs) as a whole are forecasting to recruit 0.7 per cent above the total allocated 1997-98 MASN (Table 1). This is within the permitted margin of 2 per cent.

b. Institutions are forecasting increases in award-holders of approximately 0.8 per cent per annum throughout the planning period.

c. Institutions' forecasts of home and EC student numbers on a full-time equivalent (FTE) basis exceed those assumed in the 1996 Budget by an increasing margin each year (Table 2).

d. Full-time home and EC student numbers are forecast to increase by over 1 per cent per annum. This rate of growth is slightly less than that predicted last year.

e. Forecast part-time home and EC student numbers increase by approximately 2 per cent per annum. Again, this is a reduced rate of growth compared to last year's forecasts.

f. By 2000-01, institutions forecast postgraduate taught numbers to increase by 17 per cent, postgraduate research by 9 per cent and undergraduates by less than 5 per cent. These trends are the same for both full-time and part-time provision.

g. Overseas student numbers are forecast to increase by 24 per cent by 2000-01. This includes an increase of 30 per cent in full-time undergraduates, the largest category of overseas students.

44. Twenty-five institutions were forecasting to exceed their own MASN by more than 2 per cent. Of these, six have funding levels which are more than 8 per cent above standard resource level in our new funding method. Their growth may reflect their strategies to move towards the standard level.

45. Eighty-eight institutions forecast that they would exceed their MASN, by a total of 9,300 places; 39 institutions forecast that they would recruit below their MASN by a total of 4,800 places.

46. The student number projections continue to show the effects of the cap on student numbers, with the larger growth forecast in areas unaffected by the MASN policy: overseas, postgraduate and part-time students. The forecast growth in these areas for the sector as a whole hides a wide range of changes for individual institutions. In last year's submissions, 1996-97 full-time home and EC students were over-estimated by 1.5 per cent, but award-holders were under-estimated by 0.6 per cent. Similarly, part-time home and EC students were over-estimated by 1.3 per cent. This suggests that institutions did not meet their collective targets for non-MASN students. While institutions have slightly moderated the forecast growth in full-time and part-time home and EC student numbers since last year's submissions, they may still need to have contingency plans if they are unable to meet their recruitment targets.

47. By contrast, institutions exceeded their 1996-97 overseas recruitment targets for both full-time and part-time numbers. Growth in full-time was 6.1 per cent, compared with a forecast of 5.8 per cent. Growth in part-time was 6.0 per cent, compared with a forecast of 2.8 per cent. This suggests that the further growth now forecast in overseas student numbers may not be unrealistic.

48. Tables 3 and 4 summarise student numbers in England by ASC and by mode (full-time/sandwich and part-time), with annual percentage changes in student numbers.

49. The student number forecasts reveal that between 1996-97 and 2000-01:

a. Changes in full-time and sandwich home and EC student numbers by ASC range from a reduction of 2.5 per cent in ITT (ASC 11.1) to an increase of 13.9 per cent in Other Non-ITT Education (ASC 11.2.2). The overall reduction in ITT is attributable to primary ITT, where student numbers fall by 17.7 per cent. This reflects the reduced intake targets announced in the 1996 Budget, and reductions in ITT course length at a significant number of institutions.

b. As last year, the largest percentage increase in part-time home and EC student numbers occurs in Art, Design and Performing Arts (ASC 10).

Staff numbers

50. Staff numbers, expressed as full-time equivalents, are forecast as follows:

51. These figures reveal that:

a. Staff numbers will fall by 1.8 per cent over the planning period. This comprises reductions of 1.1 per cent in academic staff and 2.3 per cent in other staff.

b. Total FTE staff numbers will fall by over 3,600 by 1999-2000.

52. These forecasts reveal similar trends in broad terms to those submitted last year. However, total staff numbers for 1996-97 are 1 per cent higher than forecast last year. Within this, academic staff numbers are 1.2 per cent lower and other staff numbers are 2.7 per cent higher.

Future requests for strategic plans

53. We wish to reduce the amount of information we request from institutions. However, strategic plans and financial forecasts provide us with valuable information on individual institutions and trends in the sector as a whole. We will shortly be consulting on our future requirements for institutions' strategic plans and the timing of their submission.

Tables

Strategic plans 1997: forecast student numbers in England

The following tables are available in an Excel workbook:

Table 1: comparison of forecast award holders at HEIs with 1997-98 MASN

Table 2: comparison of home and EC student numbers by level with 1996 Budget statement assumptions

Table 3: Full-time & sandwich student number forecasts

Table 4: Part-time student number forecasts