Carol Prokopyszyn and Martin Schröder – Manchester 2035: Funding a world-class university 

by | Nov 7, 2024 | Manchester 2035 | 4 comments

How can we fund our University of the future? Help us explore what changes we need to make to achieve our dreams in 2035 and beyond. 

Introduction 

We have big ambitions for the University and want to be able to make substantial investments to deliver our vision. Where’s the cash going to come from to do that?  

A sustainable funding model is essential for any university. UK higher education is struggling to make ends meet with many universities having to take urgent cost-cutting action.  At Manchester, we have greater financial resilience than others right now. We have the space to think carefully and act in a structured way. We will need to find more cash to fund our future, and we want your ideas to explore alternative worlds which may help us do that. 

The world in 2035 

By 2035, the demand for higher education will be greater than today as the economies in Asia, Africa and South America surge forward and expand.

The UK university sector needs to maintain and build upon its status and position to compete for the very best students globally, facilities and infrastructure: quality, excellence and financial strength will win out.

Research will be multidisciplinary with greater global collaboration as universities work together to solve local and world issues. Flexible and online learning will undoubtedly have an ever expanding and important role in 2035. On site in-person teaching will remain a key delivery mechanism especially for universities such as Manchester that have an exciting cultural and social offering as a global city region.  

IT, AI, digital and associated technological advances will undoubtedly give people a sense of greater connection and communication with one another. Automation will be ubiquitous, and some jobs and activities will disappear, and new ones emerge. What kind of institutional culture could these factors create? What will the future feel like for our people?    

The global shift will continue to be towards Asia. Chinese and other Asian universities will surely rise up the global rankings, broadening the choice of university for international students.  Demand for university education will also increase from South America and Africa as their economies grow, and the top global universities will attract the very best students.   

Three potential worlds   

World 1: Greater selectivity, no overall growth  

Headlines:  

  • Focus on what we do well, retain our world rankings.  
  • Exit areas of low quality to invest in the best.  
  • Grasp new global and local opportunities which fit with existing excellence.  
  • Maintain existing student numbers,  
  • A more focussed university, perhaps feeling to colleagues like key priorities are better resourced, providing greater clarity, although a reduction in our range of activities and specialisms could also change our culture in other ways.    

Manage cost base:  

  • Restrict budgets and make operational savings.  
  • Performance-manage and reduce costs.  
  • Simplify and standardise processes gradually.  
  • Take out operating costs by doing things better and by stopping doing things.  

New income:  

  • Opportunistic licence income and commercial activity.   
  • Work on size and shape needs to continue.  
  • International versus home needs to balance.  

Invest in excellence:  

  • Invest in new and existing quality areas.  
  • Selective investment.   

World 2: Growth, bigger and more efficient   

Headlines:  

  • Grow to 60,000 students on campus.  
  • Expand and diversify international offer.  
  • Growth in research quantity and quality.  
  • Match UCL scale (c.£2 billion income) and standing.  
  • There could be growing pains, but also benefits for colleagues as greater income can fund the automation of routine tasks, freeing up headspace for more value-adding work.  

Manage cost base:  

  • Process changes and systems improvements to drive efficiency.  
  • Steady levels of change but with significant disruption to reach simple and consistent processes across the university.  
  • More efficient, and thus costs are absorbed into the existing cost base.   

New Income:  

  • Major philanthropy campaign target of £0.5 billion.  
  • Flexible learning offer will attract a wider student base £5 million per annum: could be higher scale.   
  • More tuition fees and research income from growth.  
  • Increased innovation income streams from spin-outs and IP licensing.   

Invest  

  • Enough philanthropy to allow investment in key areas, including innovation.  
  • Increase cross subsidy to invest in key areas.  

World 3: Mega Manchester   

Headlines:  

  • Merge with others to generate the UK’s ‘Mega University’.  
  • Federate with Manchester HE to create a Manchester education ecosystem to drive economic growth and opportunity.  
  • Oxford Road corridor would be unified as a coherent University eco-centre with Sister (formerly known as ID Manchester) and innovation at the heart of it.  
  • Retain world-leading research.  
  • This would change the culture of the university, to an extent determined by how divergent the cultures of the merging institutions were.  Could both create greater career opportunity for colleagues, new exciting experiences and a more impersonal place?  

Manage cost base:  

  • Create significant savings opportunities due to economies of scale.  
  • Requires radical process change at pace to reach efficiency in business processes and teaching delivery.  

Income:  

  • Scale and ambition create opportunity for new stakeholder investment, from external and internal sources and philanthropy.  

Invest:  

  • Major investment in organisational change, structure, people, systems and process.  
  • An influx of teaching staff and students will give a major increase in headroom to deliver a step-change in online and in-person teaching at scale, delighting students at all entry levels.  

All worlds require: (i) significantly better processes and systems (ii) simplification and driving down costs (iii) an inexorable focus on performance, delivery and accountability.  

Conclusion   

A university that can fund its ambitions will be in control of its own future.

Our University will have the funding to make positive strategic choices and invest for the future, and we will compete and recruit in terms of global excellence. It will be an inspiring place for our people, our students and our community.   

It’s a great vision, but the effort required cannot be underestimated and requires everyone in the University to play their part in full.   

How can we fund our University of the future? The status quo won’t work. Help us explore what changes we need to make to achieve our dreams.  

Get involved  

We need your help to fund a world-class university of the future. Visit our Manchester 2035 web page to book onto a workshop (in person or online) and share your views through online feedback.  

You can also leave a comment below – all comments will be captured within the overall feedback we are collating. 

Carol Prokopyszyn, Chief Financial Officer 

Martin Schröder, Vice-President and Dean of the Faculty of Science and Engineering 

4 Comments

  1. David Denning

    My inclination is to focus on your middle scenario. UoM is already big and it is tough to meet colleagues and get to know them. A Mega UoM sounds very impersonal to me, and very difficult to manage.

    To achieve any steps forward, there needs to be a root and branch cutting of excess bureaucracy. You have this statement “Process changes and systems improvements to drive efficiency” and this statement  ”More efficient, and thus costs are absorbed into the existing cost base”. In my time (34 years) at UoM, I have seen a relentless growth in ‘over the top’ process. Examples include UREC, contracts and clinical trial sponsorship. I am sure there are others and all academic staff I talk to feel the same way. On the other hand some processes work well: library support, IT support, finance support for grants (although always overstretched), communications by email, PDRs.

    In my view, pruning to the minimum unnecessary process will be absolutely necessary, as these long winded administrative procedures are a major opportunity cost for all concerned and expensive overhead.

    Reply
  2. Jeremy Burgess

    Hold Bitcoin.

    Reply
  3. Adam Hurlstone

    Some other ideas:

    1) Community Contribution Fund
    Consider establishing a local contribution fund where businesses and landlords near campus make small, annual donations that directly support university projects (or a levy collected by the local authorities handed back to the unniversity as a rate rebate). This fund would recognize community investment in education and channel benefits back into the university and local area, strengthening the town-gown partnership.

    2) Milestone Engravings for Donors
    Imagine walkways or courtyards adorned with engraved bricks, stones, or plaques sponsored by alumni, faculty, or supporters. These could feature names, class years, or even short messages. By offering different sizes or placement options, this initiative could allow donors to choose a level of contribution that suits them, leaving a lasting legacy on campus.

    3) Big Idea Competition with Lottery Funding
    A university-wide lottery, where ticket sales contribute to funding student and faculty-led projects, could support innovative ideas. Lottery participants would also get a say in voting for their favorite projects, creating an exciting cycle where the community feels personally invested in the impact their contributions make on campus.

    4) Crowdsourced Project Support Platform
    Launch a dedicated online platform allowing donors to support specific university projects directly. From upgrading lecture halls to building a sustainable garden, the platform would showcase projects with funding goals and progress updates, allowing donors to see tangible outcomes from their contributions.

    5) Global University Celebration Day
    A 24-hour online celebration day with virtual events could invite alumni, students, and community members to participate in live discussions with researchers, alumni talks, and creative workshops. Friendly donation challenges by department or college could drive enthusiasm and bring together the global university network.

    6) Annual Auction for Naming Rights
    An annual event where naming rights for smaller facilities, like study rooms or lecture halls, are available for a year-long sponsorship could attract alumni or local businesses. This gives supporters the opportunity to leave their mark on campus while contributing to its growth and development.

    7) Sustainable Sponsorship Program
    Sponsors could fund green initiatives on campus—like solar panels, green roofs, or tree planting—with their contributions recognized on a digital “Green Wall of Fame” displayed online and in shared campus spaces. This initiative highlights a commitment to sustainability while engaging community partners and alumni.

    8) Digital Marketplace for Services and Skills
    An online platform connecting alumni and students for services like tutoring, career coaching, or freelance work could create a new source of revenue. A portion of each transaction would go directly toward university programs, with the added benefit of strengthening professional ties across the university community.

    9) Digital Legacy Naming Opportunities
    Offering naming opportunities for digital resources, such as sections of a campus app, online library databases, or virtual study rooms, would give sponsors a unique way to connect with students and faculty. This digital presence could be ideal for alumni or corporate partners wanting to support the university’s digital transformation.

    10) Annual Campus Festival Fundraiser
    A campus-wide festival open to the public, featuring food, music, games, and performances, could serve as an inclusive fundraiser. Students, faculty, and alumni might volunteer to run booths or participate in entertaining activities, with local businesses sponsoring parts of the event. Proceeds from admission, games, and food sales could go directly toward funding university initiatives.

    Reply
    • Carol Prokopyszyn

      Some great ideas there Adam on expanding philanthropy- thank you!

      Reply

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