Danish University Mergers - the Case of Aarhus University

MERGERS IN HIGHER EDUCATION
University Reforms in Denmark – the Case of Aarhus University

RECTOR LAURITZ B. HOLM-NIELSEN 08-03-2012

UNIVERSITY REFORMS IN DENMARK – THE
CASE OF AARHUS UNIVERSITY

• CONTEXT
• The higher education system and its performance
• REFORM PROCESS
• Governance, mergers and a new funding compact
• AARHUS RESPONSE
• Shaping the modern European university
• NEW AARHUS UNIVERSITY
• Organizational, financial and academic autonomy, a focus on
interdisciplinarity, access and openness


INCREASING DEMAND FOR KNOWLEDGE:
MOTIVATION FOR CHANGE

• Globalization
• Food security
• Water quality The world is globalized, with complex
• Energy sustainability interconnected challenges which transgress
• Demography and migration disciplinary boundaries – with regard to
• Public health causes, consequences, and solutions
• Transnational economies
• Political stability and security
• Climate change
• ...


THE OFFICIAL GOALS OF THORNING-
SCHMIDT GOVERNMENT 2011-

• 95 % should complete youth education, 60% higher
education

• 25 % should complete research based higher education by
2020

• 2.5 % in PhD and 1% in post doc programmes

• Strengthen the national innovation strategy: education,
research, innovation

• State Education Grant, taximeter for first two cycles

HIGHER EDUCATION

Years

Denmark:

• is signatory to the Bologna process

• has introduced the European
qualifications framework

• has an independent accreditation
board, and works towards a flexible
post secondary education system

5

UNIVERSITIES IN GLOBAL RANKINGS 2011
Technical University of
University of Aarhus Aalborg
University of Southern
Copenhagen University University
Denmark Denmark

ARWU
43 86 151-200 201-300 -

QS
Ranking 52 79 150 311 362

THE 135 125 178 251-275 301-350

HEEACT 40 96 211 223 -

LEIDEN 54 53 - - -


GLOBAL PERSPECTIVE ON CITATION IMPACT
Aarhus University

Danish Technical University

Normalized
citation
impact

University of Copenhagen

US top universities
European top universities

Total number of publications 2003-07


ATTRACTIVENESS OF UNIVERSITY SYSTEMS

Researchers satisfaction by country
Criteria
 Degree of independence 0,90

 Guidance received from superior or 0,80

coworkers 0,70

 Salary 0,60

 Holiday entitlement 0,50

0,40
 Health-care benefits
0,30
 Maternity or paternity leave
0,20

 Retirement plan 0,10

 Total hours worked per week 0,00

South Korea

China
Netherlands

India
US
Australia
Sweden

Japan
Italy
France
Switzerland

UK
Canada
Denmark

Spain
Germany

Source: Nature Vol 465 24 June 2010

RECTOR LAURITZ B. HOLM-NIELSEN
08-03-2012

INCENTIVES AND REASONS FOR INITIATING
THE DANISH MERGERS

• Stronger institutions through consolidation of resources

• Increased international competitiveness

• Acadcemic synergies and innovation in education and research

• Cross organizational cost effectiveness


NEW FRAMEWORK CONDITIONS

1998/99, Intergovernmental 2003 – 2007, Danish sector reforms: 2010, The AU Academic
agreement: Governmental • New University Act (2003) (2011) Development Process:
push for convergence of HE • Reorganizing HE&R institutions (2007) • Unified management
systems by 2010 • Modernizing the funding compact • Interdisciplinarity

1999, Bologna 2000, European Research 2008, Aarhus 2010, European Higher
Declaration: Area: University’s Strategy: Education Area:
Key principles Cohesion in European • Research 10 years after the Bologna
adopted by Ministers research, promoting • Talent development process. Adopted by 47
of Education of 29 transnational scientific • Knowledge exchange countries, facilitating efforts
European countries knowledge flow, • Education to enhance European HE
competition, collaboration comparability, compatibility
and mobility and coherence


NEW UNIVERSITY ACT OF 2003

• Autonomy – going from state institutions to autonomous entities
within the public sector

• Accountability through the use of performance contracts, audits
and accreditation

• Governing boards with a majority of external members, which
safeguard the university’s interests and determine guidelines for its
organization, strategy and development. Appoints the rector.

• Appointed leaders in university management structure (rector,
deans, department heads, heads of administration etc.)


REORGANIZING HE&R INSTITUTIONS IN 2007


MODERNIZING THE FUNDING COMPACT

•Committed to the Lisbon and
Barcelona targets
Gross Public R&D investment (million EUR)
2.700 •Public investments in research 1
percent of GDP by 2010
2.500 •University core-funding is based
on performance indicators (45%
2.300 graduation, 10% Ph.D. program
efficiency, “25% bibliometry, 20%
external funding)
2.100
•Study programs are taximeter
1.900 funded (automatic and follows
accumulated completed ECTS)
1.700
•50-60% of research funding
through competitive mechanisms
1.500 e.g. research councils (includes a
2004 2005 2006 2007 2008 2009 2010 2011 flat overhead rate of 44%)


UNIVERSITY MERGERS IN DENMARK

• CONTEXT
• The higher education system and its performance
• REFORM PROCESS
• Governance, mergers and a new funding compact
• AARHUS RESPONSE
• Shaping the modern European university
• NEW AARHUS UNIVERSITY
• Organizational, financial and academic autonomy, a focus on
interdisciplinarity, access and openness


MOTIVATION FOR CHANGE

 Ambition to further improve quality, impact and international reach

 Strong performance in terms of academic and financial results

 Complete the merger process to create one unified university

 Move to tear down internal boundaries and stimulate collaboration
across disciplines

 Ensure a more professional and efficient administration


CHANGE PROCESS AT AARHUS UNIVERSITY

Merger with
 Danish School of Education Merger with
 Aarhus School of Business  Aarhus Engineering School
 Danish Agricultural Institute
 National Environmental Research Institute

Academic Implementation
development
process

5 faculties, 9 faculties with 55 institutes, 4 faculties with 27 institutes
located in Aarhus located all over Denmark located mostly in Aarhus

2006 2007 2008 2009 2010 2011 2012


A MERGER PROCESS IN THREE PHASES

1. Safe performance after mergers
• Staff relations
• Student relations
• External relations
• Web site and contact information
• Relationship with international partners, EU etc.

2. Strategy and planning of administrative and academic integration

3. The academic development process


THE TRIPLE HELIXUNIVERSITY
THE HUMBOLDT UNIVERSITY
A MODERN UNIVERSITY – COMBINING MASS AND ELITE

TALENT DEVELOPMENT

RESEARCH EDUCATION

KNOWLEDGE EXCHANGE


CHANGE PROCESS AND EMPOWERMENT AT AU

• Academic organization: A unified university with fewer internal boundaries
From nine to four main academic areas, from 55 to 26 departments,

• Governance: Management with appointed leaders and joint responsibility for the
entire university. From ten management units to a senior leadership team with
cross-cutting responsibility for strategic management and quality assurance

• Administration and finance: A single university with an integrated administration
A common financial model, standardised quality service for the whole university;
from three to one (two) levels of administration – front office and back office
philosophy

• Academic cheques and balances: one academic council per faculty (main
academic area), and 4 AU Fora, one for each core activity: research, talent
development, knowledge exchange and education


CHECQUES AND BALANCES IN THE
GOVERNANCE STRUCTURE

AU Board

External Internal

Advisory Boards AU Forums

AU Management
Employer Panels Academic Councils

Advisory Departmental
Committees Forums


THE NEW AARHUS UNIVERSITY

• ORGANISATIONAL AUTONOMY
• AU reforms and a focus on interdisciplinarity

• FINANCIAL AUTONOMY

• ACADEMIC AUTONOMY

• ACCESS AND OPENNESS


A SINGLE UNIFIED MANAGEMENT WHERE
DEANS HAVE DOUBLE RESPONSIBILITIES


TODAY 2012
EXAMPLE - ARTS • Department of Culture and Society
• Department of Aesthetics and
Communication
• Department of Education
• Centre for Teaching Development and
Digital Media

BEFORE 2011

HUM

ARTS

DSE TEO


INTERDISCIPLINARY SOLUTIONS TO
COMPLEX CHALLENGES

Interdisciplinary centers
• iNANO
• MINDlab
• Neurocampus
• Food, Nutrition and Health
• Global Change and Development
• Integrated Register-based Research
• Arctic Research
• …
• …

National Centers of Excellence
• 18 National Research Foundation centers
• 5 Lundbeck Foundation and VKR Foundation Centers


AU CONTRIBUTIONS TO GLOBAL RESEARCH
INFRASTRUCTURE
Aarhus Institute of Advanced Studies
• Exceptionally talented younger researchers from all over the world
• Stimulating, international and interdisciplinary environment
• Opportunity to pursue own research interests for a 2-3 year period
• Independent managerial structure with international advisory board

International research platforms
• ASTRID II – Heavy Ion Storage Ring and Synchrotron Radiation Facility
• Research Vessel
• National Centre for Particle Radiotherapy
• National Centre for NMR
• Testing Facilities for Wind and Bio Energy Systems
• Information intensive population databases
• Zackenberg High Arctic Research Station

08-03-2012

DIVERSIFIED– INCOME STRUCTURE

Other. 9% Study
Government programmes
contracts 4% 25%

Budget 2012:
EUR 825 million

Competitive
research
funding. 28%

Core
research
34%

TOWARDS FINANCIAL INDEPENDENCE:
AU RESEARCH FOUNDATION
AARHUS UNIVERSITY BOARD
Aarhus University
Research Foundation
RECTOR’S OFFICE ADM. AURF BOARD AURF Equity: EUR 400 m
AURF Balance: app. EUR 1 bn.
ARTS AURF Grant Budget: EUR 10 m.
SCIENCE AND TECHNOLOGY
RESEARCH FOUNDATION
BUSINESS AND SOCIAL SCIENCES
RESEARCH FOUNDATION’S
HEALTH REAL ESTATE LTD.

AURIGA INDUSTRIES LTD.
AU Student body: 42,492 students
AU Staff: 13,389 employees ØSTJYSK INNOVATION A/S,
AU 2012 Budget: EUR 825 M. INCUBA LTD.

INCUBA SCIENCE PARK LTD.


EXPENDITURES AT AARHUS UNIVERSITY
The Humboldtuniversity
The triple helix university
The modern university AU – Expenses per core activity

Talent development Talent
PhDs development
24%
Post docs Students

Research Education
Research Education
Professors
Research
33% 31%
Studies
projects
Research Lifelong
programmes learning

Knowledge Knowledge
exchange exchange
Contracts 12%


AARHUS UNIVERSITY -
A UNIVERSITY GROWING STRONGER
Expenditures (EUR million)
900 826
• 40,500 students (FTE) 803
761
(52% graduate level students) 800 693
733
700 643
• 3,000 PhD students and 600
early career researchers 500
392
400
• 4,300 international students
300
• 7,200 employees (FTE) 200
100
• 11,731 publications in 2010 0
2006 2007 2008 2009 2010 2011 2012


RESULTS, PROGRESS IN COMPETITIVENESS

RANKINGS AARHUS UNIVERSITY RANK

2011 2010 2009 2008 2007

Leiden Crown
53 55 - 105 -
Indicator

ARWU 86 98 97 93 102

QS WU Ranking 79 84 63 81 114

THE 125 167 - - -

HEEACT 96 105 101 118 132


MUITO OBRIGADO

LAURITZ B. HOLM-NIELSEN
RECTOR@AU.DK

Danish University Mergers - the Case of Aarhus University

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