Bogota, Oct 12, 2007

Institutional AdvancementInstitutional AdvancementHigher Education Resources

in the Post-Industrial Era

Kai-ming ChengThe University of Hong Kong

For National Forum on Higher EducationBogota, Oct 11-12, 2007

Society has changed …

Industrial Society: the Pyramid

Higher Higher EducationEducation

Industrial Institutions

Operatives

Craftsmen

Technicians

Engineers Degrees

Diplomas

Basic Education

Vocational

Training

Higher Higher EducationEducation

Hong Kong …

Around 304,000 registered companies (Sep 2006)

99.3 ％ under 100 (SME) 69% of employees

94.3% under 20 40% of employees

87.0 ％ under 10 33% of employees

Over 1,000: 110

Free-lancers 220,000 estimatedvis-à-vis 2,200,000 in registered companies

The United States

Business Enterprises

98 ％ under 100

86 ％ under 20

National Bureau of Economic Research, 2002

Shanghai (2005/6)

•SME: 99.7%

•Employees: 86.8%

•Total asset: 69.2%

Project Groups/Task Forces

Small Enterprises

Free-lancers

Post-industrial: Workplace

Higher Higher EducationEducation

On-going processes of Re-engineering De-layering Down-sizing Out-sourcing M & A Closure

OrganisationsIndustrial Large pyramids Producer-centred Departments Hierarchy Tight structure Design at the top Assigned procedures Rules & regulations

Post-industrial Small companies Client-centred Project teams Flat Loose & fluid Design at front-lines Improvised actions Fit-for-purpose acts

Front-line workersIndustrial Bottom of the hierarchy Hiring due to credentials Member of a specialised

department Implementation of design Using specific skills Routine and repetitive

activities Working according to job

descriptions Following set procedures Maintaining the

convention Abiding by rules and

regulations Appraised by degree of

compliance Stable and secure Blue collars

Post-industrial Member of a small group Hiring due to personality Working in teams Directly facing clients Handling human relations Directly facing problems Anticipating total solutions Designing solutions with

creativity Using multiple skills Taking risks Improvising fit-for-purpose

activities Managing oneself Learning on-the-job, on-demand,

just-in-time Appraised 3600

Unstable, uncertain and insecure Knowledge workers

Individual LivesIndustrial Lifelong career Long-term loyalty Occupational identity Work-study consistency Org membership Stable employment Escalating salaries Upward mobility Foreseeable retirement Constant networks Stable relations Security, certainty

Post-industrial Multiple careers Multiple jobs Blurred identity Work-study mismatch Possible free-lancing

Frequent off-jobs Precarious incomes Fluctuating status Unpredictable future Varying networks Changing partners Insecurity, uncertainty

Expectations …

Industrial Credentials Specialized skills Planning &

implementation Navigating the

bureaucracy Following the

heritage

Post-industrial Communications Team-working Human relations Problem-solving Risk-taking Design & innovations Personal responsibility Continuous learning Self-management Ethics, values, principles

Global Challenges to HE Mismatch between education and work Preparation for multiple careers Emphasis on generic capacities Just-in-time and on-demand learning Expectations on innovations and creativity Emphasis on human/social competence Demand on self-confidence/-management Challenges in ethics, values, emotions, …

Trends in Asia in Higher Education ..

Some Trends in AsiaSome Trends in Asia

Unprecedented Expansions Building Elite Universities Expanded Student Learning

Experiences

Unprecedented expansion South Korea: oversupply

enrolment ratio: 84% (2005)

Taiwan: oversupply; enrolment ratio: 82% (2005)

Japan: oversupply in 2 years, enrolment ratio: 76.2% (2005)

Singapore: major expansion Enrolment ratio: 81% (2005, from 15% in the early 1990s)

Hong Kong, China: major expansion Enrolment ratio: 67% (from 30% in 2002)

Unprecedented expansions: China:

23M (world’s largest, 6M in 1998; 7% to 23%)

Major cities > 80% enrolment

India: 11M (world’s third)

Secondary Colleges

Pakistan 2.9% (2005) to 5.8% (2010)

Saudi Arabia Thailand

Establishing elite institutions: China:

Project 211 Project 985

Pakistan: Major expansion 11 new elite universities

Thailand: Major expansion 1 global top-50; 4-5 regional top-50

Taiwan 50B for 5 years

Saudi Arabia 2 elite universities

Lives in Higher Education

ClassesClassesStudyStudyStudent Activities/Halls

Executives of Organisations

Internship, Placement, Mentorship

Design, Music, Drama, Sports

Community Services/NGO

Visits to Rural, Deprived Communities

International Exchange

Some Trends in AsiaSome Trends in Asia Unprecedented Expansions Building Elite Universities Expanded Student Learning

Experiences

Who pays?

Resource Strategies for HE

Public Public MoneyMoney

Public Public InstitutionsInstitutions

Community Community ResourcesResources

Private Private InstitutionsInstitutions

Public funding no longer adequate for the expanded system

Private participation as a matter of resources strategy

Repositioning the Private Sector…

Enhancing private participation

% Students Institutions

Korea 78 87

Taiwan 72 66

Japan 77 86

Philippines 81 75

Indonesia 96 71

Malaysia 92 39

Pakistan 64 18

Significance of Private SectorSignificance of Private Sector

Enhancing private participation

% Students Institutions

Brazil 71 89

Chile 71 93

Venezuela 41 57

Nicaragua 48 52

Argentina 20 50

Significance of Private SectorSignificance of Private Sector

The blurring boundaries … Purely public institutions

Government appropriation only

Public institutions + partial self-financing programs + projects on competitive basis + private donations + commercial incomes

Private institutions + projects from public sources + public subsidy to students

Purely private institutions Tuitions only

Two Sectors?

Public Private

Or One Continuum …

Public Private

New resources strategies …

The pie is much larger than Government budget

Private participation is not a dispensable option

Private participation should become a major item on the policy agenda

Government plays only a pivotal role

Dancing with private participation Recognizing private contributions Blurring the sectoral boundaries Innovations of private participation Focusing on learners Living with the “market” Moving beyond the civil service ideology New framework of accountability

Philanthropy in Higher Education …

Philanthropy: Global Trends I

International growth in philanthropy Gates-Buffet Alliance

Wealth and Commonwealth

Li Ka Shing “The Third Son” Medical Alliance

Giving to US and UK universities

Philanthropy: Global Trends II

Government Matching Singapore: perpetual Hong Kong: 3B HKD (attracted 7.4B) UK: GBP200M for 3 years

Institutional Advancement…

Evolution of Terminology

Fundraising Resource Development Institutional Advancement

Institutional Advancement Mobilizing resources beyond

government appropriation for the advancement of the

institution in areas of prime importance

hence enabling the institution to achieve excellence at a higher plane

thereby empowering the institution to enjoy autonomy at a new level

Institutional AdvancementDonations in higher education: Nature

Donation is not charity to the deprived Donation is partnership with the strong Donation is endorsement of mission Donation is recognition of contribution

Higher Education ResourcesP

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Harvard expenditures

60%Projects 65% levy

30%Tuitions 55% on scholarship

10%Donations 29.2B at 16.7% p.a.

Philanthropy: a different pie

Government AppropriationGovernment Appropriation + Learners’ Fees + ProjectsGovernment Appropriation + Learners’ Fees + Projects + Private Donations

A different paradigm Public funding No money, no plan Budget cut, activity

reduction Look for small

money Ask for money

when poor Funding is the limit Doing what we did Steady progress Appropriation

Advancement No vision, no money Great vision,

big money Look for big money Ask for money when

strong Sky is the limit Scaling new planes Advancement Partnership

Why fundraising?

Public appropriation maintains us as just “one of many”

Advancement makes a difference!

Advancement = Community Support = Fundraising

= Resources Development = Donations

Fundraising: How to do it?

Target Goal

Strategies

Needs/Products Donor Accounts

Activities

Capacity & Infrastructure

Stewardship & Renewal

20 April 2002 Hong Kong Universities

The Classic Fundraising Pyramid: Gift Profile

Leadership Gifts

Premium Gifts & Sponsorships

Corporations Foundations Individuals

Major Giving

Annual Giving

International reference

10%

10%

40%

40%

1

10

100

1000+

No of Donors Amount of Donations

The PyramidThe PyramidAmount $'K Min. No. Max. No. Min. Sum ($'K) Max. Sum ($'K)

100,000 2 3 200,000 300,000 30,000 14 18 420,000 540,000 10,000 22 25 220,000 250,000

5,000 25 32 125,000 160,000 2,000 70 80 140,000 160,000

500 130 150 65,000 75,000 100 300 400 30,000 40,000

5 600 1,000 3,000 5,000 1 6,000 10,000 6,000 10,000

TOTAL : 7,163 11,708 1,209,000 1,540,000

Capacity & Infrastructure

President/Rector as Champion Consensus in Senior Management Team Major Fund-raisers/Ambassadors A Development Office Synergy with alumni affairs, media, … Expenditures: 10-20% of donations

Fundraising capacities

Donor Mapping Internal and external networking Cultivation Product design Solicitation Gift Launching Account Stewardship Account Renewal

Endowed Professorships Inauguration

Fundraising Lecture:Stock Investments

2.8M from 1,200

The Power of Matching: HK

Government Matching I: 2002-3 (1B) Government Matching II: 2003-4 (1B) Government Matching III: 2005-6 (1B)

Attracted over 7.4B

Stanley Ho Alumni Challenge (500M) Azalea 1972 (100M)

Stanley Ho Alumni Challenge

Alumni Donations on the Rise

Alumni Donations: 296M ↑646%Maximum match $5M per donation per year only

Number of Donors: 2,455 ↑214%

First-time Donors: 85%

Alumni Challenge Effect: 05-06/04-05

Benchmarking …

Benchmarks: HKU (2005-06)

Total sum Leadership gift Participation Total Endowment Good investment

How to plan …

Assessing the needs …

..\..\..\Institutional Advancement\Campaign 07\Campaign

calculation.ppt

Example: Planning..\..\..\Institutional Advancement\Centennial Campus\Campus Pyramid 070719.xls

How to start …

Case Statement

What are we doing? What is so great in what we do? Why should we need money? How would donation make a

difference? Why us, and not others?

Faculty Development Plan

E.g. Law at HKU 800M in 5 years Chair Professors: from 3 to 7 Training of Mainland China Judges Human Rights program for China New area: Arbitration New area: Jurisprudence A devoted Law Building

After all, …

Higher Education

excels with,

and only with,

Mission and Passion!

Gracias!

kmcheng@hku.hk