Australasian Universities Risk and Insurance Management Society The Client/Customer Relationship;...
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Transcript of Australasian Universities Risk and Insurance Management Society The Client/Customer Relationship;...
Australasian Universities Risk and
Insurance Management Society
The Client/Customer Relationship;Some Risks for the University
As Service Provider
Dr John Toohey
Why this paper?
Education (knowledge) is a valuable commodity - individually and corporately
Universities are increasingly “service providers”
“Customer”/“Client” relationships are being tested
Universities are not prepared for clients Risks / exposures (opportunities) are real
What is happing out there? Globalisation
- companies / universities (U21, Global Allia.) Technologically-mediated Delivery
- flexibility and capability (time and place) Knowledge Management / Commodity
- from “muscle” to “brain” - protection of IP Socio-political Issues
- education - rights? duties? who pays?
Customer or Client?
Customer Relationship -
essentially an economic exchange/transaction, in which goods or service are exchanged for money e.g. buying a car
the relationship is by its nature ephemeral and usually a singular event
Customer or Client?
Client Relationship - a more open ended quest for service that
meets a less specified need e.g. education, health
relies on high levels of expert qualification e.g. doctor, teacher
more indeterminate relationship e.g. may go on for some time
outcome usually relies on high levels of trust and reciprocity between the parties
Universities have Student/Clients teaching - learning relationship(s) reciprocal roles and responsibilities high order expertise certification process trust relationship time independent (alumnus)
Universities have Other ClientsIn areas of ... research and development commercialisation of knowledge business incubation joint ventures “global” associations adjunct appointments
The University now
public or private responsibility (social policy)
growth of fee-paying programs (mainly graduate level)
partnering with like tertiary institutions community service standards conservative student body greater competition for resources necessity to partner with “industry”
What risks arise?
INTERNAL inability to understand the service provider role and incapacity to develop internal expertise to deliver within a changing environment
EXTERNALinability to develop and deliver educational services commensurate with marketing assertions
Risks and Consequences
- poor student management- inadequate teaching- inferior support (counselling etc.)- limited resources (library, computer labs. counselling)- poor quality learning materials
Risks and Consequences
RESULTING IN …- loss of market share- weakening of brand- loss of industry / business support- poor public image- political vulnerability- possible litigation
New Education Models
Interaction
ContentSystemSupport
Drives the teaching and learning process
Study guides, text books,CD ROM’s, online materials,library support
Admin and communication systems, content preparation and delivery,assignment management,etc etc
“Educational Negligence”
“Educational negligence occurs when a student suffers harm as a result of incompetent or negligent teaching”.
Ian RamsayUNSW Law Journal, Vol. 11, p.184.
“Educational Negligence” - CasesOpen University, UK“.. complained about the quality of his course
and received damages to cover the majority of his tuition fee..” Guardian, 15 Sep 98, Higher Ed.
J.Gill (Lawyer specialising in education), UK “Students are increasingly taking legal action when the teaching or other facilities offered by universities … fails to meet expectations”
“Educational Negligence” - CasesUS - “Due Process”“.. issues litigated include research
integrity, civil rights, student behaviours...” The National Law Journal, v14, n40,1992.
UK - Student Under-performance“ .. pursuit of damages for a pupil’s
academic under-performance…” Liverpool Law Review, v20, n1, 1998.
“Educational Negligence” - CasesAustralia - “university activities as
products”“.. perception that activities of a university
should be seen as products .. legal protection should be afforded to consumers..” Queensland
University of Technology Law Journal (12), 1996.
NZ - Accountability for teaching standards“ .. statutes, duties and powers of school
boards” New Zealand Law Journal, September 1997.
“Educational Negligence” - CasesAustralia / Canada -Liability for pure economic loss
“.. category of claims for negligent misrepresentation .. negligent supply of goods, negligent performance of a service …”University of Western Australia Law Review, 28, (1),
1999.
External Scrutiny
SENATE INQUIRY - “… the operations and effect of universities’ commercialised research and development structures ...- public liability consequences of private, commercial activities of universities...”
Senate Employment, Workplace Relations, Small Business and Education Reference Committee, October 2000
External Scrutiny
“.. stiff competition also creates incentives for unethical traders to cut corners to beat their rivals … the incentive to cheat will always be too much for some businesses ..”
Professor Allan Fels, The Impact on competition policy an
law on higher education in Australia, 24 November 1998.
Solutions?
“Quality Strategy”(centralised but across whole institution)
- marketing (offerings match hype?)- appropriate offer (e;g. language, capacity for
non-graduates)- student servicing (right people & right job)- “pastoral care”
Solutions? (continued)
“Quality Strategy”
- internal coordination (central vs.faculty) - systems support (systems & finance)- pricing policy - brand leverage responsibilities- staff roles and development (academic and “general”)
Solutions? (continued)
RISK MANAGEMENT
- identification- assessment- control