Directory UMM :Data Elmu:jurnal:I:International Journal of Educational Management:Vol11.Issue6.1997:
Reassessing resource allocation strategies in higher
education: methods for analysis
Geraldine Clarke
Le c ture r, De Mo ntfo rt Unive rsity Busine ss Sc ho o l, Le ic e ste r, UK
Outlines the imperative of
higher education organizations to remain in the forefront of strategic planning
thinking. They are the breeding ground for innovative
approaches to competitive
and co-operative advantage in
the commercial world. Attention is drawn to models of
higher education organization
which have been matched by
similar strategic paradigms in
business. The growing popularity of supply-side methods
of competitiveness is investigated in the context of the
collegiate system of higher
education. Core competences
are now as important as
customer focus in strategic
planning. Core competences
relate to all resources that a
university has. Appropriability
indices give a measure of how
institutions can begin to
measure some of their core
competences from the ground
up. Another method for
understanding and assessing
core competences is to apply
system network mapping.
System networks are complex
webs of interrelationships
between staff and other
facilities which give the organization valuable competitive
advantage and which are not
easily imitated.
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [ 1997] 2 8 6 –2 9 2
© MCB Unive rsity Pre ss
[ ISSN 0951-354X]
[ 286 ]
Introduction
With in a n ew globa l envir on m en t, ch a r a cter ized by r a pid ch a n ge, in ten se in for m a tion
flow s a n d in cr ea sin g com petition th r ou gh th e
r edu ction of ba r r ier s to tr a de a n d exch a n ge,
h igh er edu ca tion in stitu tion s, pa r ticu la r ly in
th e UK, a r e slow ly em er gin g a s or ga n iza tion s
dr iven by th e com m er cia l im per a tive of
m a r k et-led for ces. Yet th eir str a te gies for
a lloca tin g r esou r ces a r e em bedded in m odels
of h igh er edu ca tion or ga n iza tion s a s pu blic
in stitu tion s, r a th er th a n a s com m er cia l
or ga n iza tion s.
Wh ile it wou ld be str a igh tfor w a r d to
a dvoca te th a t u n iver sities ta k e a m or e
pr ogr essive com m er cia l a ppr oa ch to r esou r ce
a lloca tion th a n h a s been th e ca se in th e pa st,
th is wou ld den y th e in fl u en ce th a t su ch
in stitu tion s, pa r ticu la r ly th r ou gh th eir
bu sin ess sch ools, h ave h a d on th e th in k in g
a n d bu sin ess a ppr oa ch of execu tive officer s
a n d dir ector s of com petitive or ga n iza tion s.
Per h a ps it m igh t be a qu estion of “physicia n
h ea l th yself ” if it is su ggested th a t u n iver sities ta ke a lea f ou t of th eir ow n bu sin ess
edu ca tion book s. Th is a r ticle, h owever, a r gu es
qu ite th e opposite. Th e cu r r en t em er gin g
pa r a digm of bu sin ess str a tegy is th e a n a lysis,
r eten tion a n d exploitation of cor e com peten ces
to a ch ieve, exten d a n d m a in ta in com petitive
a dva n ta ge. Th is is m u ch m or e a m odel of
h igh er edu ca tion collegia te or ga n iza tion th a n
a n y efficien cy/ effectiven ess pa r a m eter s of
com m er cia l r esou r ce a lloca tion . As su ch it is,
th er efor e, su ggested th a t u n iver sity m odels of
r esou r ce a lloca tion , especia lly th e collegia te
a ppr oa ch , if developed sen sitively ca n be m or e
u sefu l to in for m n ot on ly r esou r ce a lloca tion
in u n iver sities bu t a lso to lea d developm en t of
n ew r esou r ce-ba sed a ppr oa ch es for com m er cia l com petitive a dva n ta ge.
Given th a t th e str a te gy pr ocess sta r ts w ith
a n a n a lysis of ava ila ble r esou r ces befor e
developin g m ission sta tem en t a n d possible
pa th tr a jector ies, th is a r ticle explor es th e
u sefu ln ess of two m ea su r es of r esou r ce eva lu a tion wh ich w ill better in for m th e str a te gym a k in g pr ocess in u n iver sities wh ich oper a te
in a colle gia te en vir on m en t exten din g pa r ticipa tion a n d decision m a k in g to a ll m em ber s
of th e or ga n iza tion . Th e fir st tech n iqu e is th e
u se of a ppr opr ia bility in dices to better u n der sta n d th e str en gth s a n d wea k n esses of th e
ser vice offer in g. Th e secon d tech n iqu e is
system n etwor k m a ppin g to iden tify com plex
cor e com peten cies wh ich a r e n ot ea sily
r epla cea ble a n d a r e a lso va lu a ble beca u se
th ey a r e n ot ea sily im ita ted. Th ese two tech n iqu es ca n be u sed eith er a s a self-a ssessm en t
exer cise for in dividu a ls a n d gr ou ps w ith in a
u n iver sity or a s a n a u dit tool to in for m execu tive decision m a k in g.
Past experience
Alloca tive m ech a n ism s h ave a lw ays been
der ived fr om th e over r idin g str a te gic pa r a digm . Th is is ta k en to m ea n th e in ter pr eta tion a n d in ter n a l r espon se of or ga n iza tion s to
th eir exter n a l en vir on m en t in pu r su it of
th eir goa ls. For exa m ple scien tific m a n a gem en t cr ea ted a fu n ction a l str u ctu r e wh ich
con cen tr a ted on efficien cy. In pa r a llel,
va r iou s tea ch in g m odels wer e a ssessed on th e
ba sis of th eir costs (see Ta ble I) a n d fi t in w ith
th is a lloca tive efficien cy dir ective.
Su ch a n efficien t m ech a n ism is ch a r a cter ized by a few sen ior bu dget h older s m a k in g
th e a lloca tive decision s (Min tzber g, 1991a ).
Still ta k en a s th e n or m for str a te gies em ph a sizin g efficien cy, som e u n iver sities wor ldw ide h ave yet to a dopt a m or e m oder n
a ppr oa ch . Gu n n (1995), in pa r ticu la r, a r gu es
for cefu lly for a ch a n ge aw ay fr om h ier a r ch y
a n d bu r ea u cr a cy for th e sa k e of th e cor e ser vice a n d com petitive a dva n ta ge.
Oth er str a te gic pa r a digm s a pplica ble to
u n iver sities in clu de bu r ea u cr a tic u n iver sa lism (pu blic sector, for m a l, r u le-bou n d,
u n iver sa l a n d im per son a l) wh ich ca n lea d to
politica l con fl ict (m ilita r y ta ctics ba sed on
possession , a u th or ity a n d r igh t to m a k e
decision s) (Ba ldr idge, 1971; Beck er a n d
Koga n , 1980; P feffer a n d Sa la n cik , 1974) a n d
m u ltiver sa l dem ocr a cy (Cla r k , 1983) wh ich
Min tzber g (1991b) r efer r ed to a s r eleva n t for a
m a tu r e, diver sified bu sin ess w ith m a n y
pr odu ct/ ser vice lin es.
Mor e r ecen t com m er cia l r esea r ch (Ha m el
a n d Pr a h a la d, 1993) a sk s why som e com pa n ies
r edefin e th e in du str ies in wh ich th ey oper ate,
i.e. wh at is im por ta n t a r e th e m a n a ger ia l
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
fr a m es of r efer en ce. Th ese fr a m es of r efer en ce
a r e con sider ed to be sou r ced fr om bu sin ess
sch ools a n d a r e th e dr iver s wh ich cr eate
im por ta n t differ en tia l th in k in g in th e m in ds of
today’s m a n a ger s. On th e oth er side of th e
equ ation it is on ly possible to con tem plate
a lter n ative str ategies w ith in th e w ider con text
of a better - edu cated a n d m or e in for m ed wor k for ce a lso sou r ced fr om u n iver sities. Th er efor e
h igh er edu cation is a n in pu t in to both th e
in ter n a l a n d exter n a l dim en sion s of cor por ate
r ea lity. Con sequ en tly it is r ecipr oca lly im por ta n t for u n iver sities to con sider th eir a ppr oa ch
to str ategy in th e ligh t of bu sin ess exper ien ce.
Mor e pa r ticu la r ly, th e High er Edu cation Fu n din g Cou n cil for En gla n d (HEF CE) is con sider in g a gr eater u se of in stitu tion a l str ategy statem en ts to in for m its r esou r ce a llocation to fu n d
tea ch in g. It r equ ir es th at th e u n iver sity’s
m ission statem en t n ow gives:
a clea r idea of ea ch in stitu tion ’s pu r pose a n d
distin ctive ch a r a cter istics (HEF CE, 1996a ).
Wh ile th e fu n din g cou n cil h a s a lways m a de it
explicit th at th e in ter n a l a llocation of
r esou r ces sh ou ld in n o way r eflect th e Cou n cil’s a llocation to th e in stitu tion ; th e Cou n cil’s
objective (HEFC, 1996b) is to fu n d sim ila r a ctivities at a sim ila r r ate a cr oss th e cou n tr y. Th e
pr esen t fu n din g m eth od wa s, in pa r t, in h er ited
fr om pr eviou s bodies su ch a s th e Un iver sity
Gr a n ts Com m ittee (UGC) a n d th e Polytech n ic
a n d Colleges Fu n din g Cou n cil(PCFC) wh ich
fu n ded th e sa m e pr ocess at differ en t r ates.
Th e HE F CE n ow pr oposes th a t in stitu tion s
sh ou ld bid for a ddition a l n u m ber s on th e
ba sis of qu a lity, dem a n d, n a tion a l a n d
Table I
Fo ur instruc tio nal mo de ls o f highe r e duc atio n c o st
Instructional
model
Conventionala
RUM Lb
Programmed independent c
Programmed learningd
Labour
costs
Capital
costs
H
VH
H
H
M
M
M
H
Relative
Relative
labour
labour
Costs of
intensity productivity ouput
H
H
M
M
M
VH
H
H
MH
ML
M
H-VH
Key:
VH = very high; H = high; MH = moderately high; M = moderate; ML = moderately low
a
Traditional mix of lec tures, tutorials and lab work; homogeneous servic e; predic table
outc omes; easy to program
b RUML – Resourc e Utilization Model of Learning – large lec ture groups foc using on
ac ademic exc ellenc e; intensive tutorials, no fringe subjec ts
c Student c entred; broad-framed syllabus, student c hoic e and initiative, more work
stations, staff training in c ounselling and determine timetable with students, e.g.
Lanc aster, NE London
d Keiffer model-distanc e learning staff write lec ture programmes and deliver via media.
Counselling required for non-traditional students, e.g. Open University
Source: Bowers and Douglas (1971)
r e gion a l n eeds (HE F C, 1996c). Th is im per a tive is lik ely to ou tla st wh a tever r ecom m en da tion s th e Dea r in g Com m ittee m a k e. Clea r ly
th e gover n m en t objectives wh ich a r e bou n d
u p in th e HE F CE docu m en t u n der pin a m ove
to a m or e com petitive en vir on m en t in th e
h igh er edu ca tion sector. Th e k ey ph r a se is
“efficien cy ga in s” wh ich h a s, in th e fir st
in sta n ce, ca u sed a r etu r n to th e “m a ch in e
or ga n iza tion ” m en ta lity. Som e u n iver sities
h ave pu lled in power a n d r espon sibility to th e
cen tr e or a pex of th e h ier a r ch y.
As con str a in ed com petition h a s becom e th e
n or m , it is ea sy to u n der sta n d th a t u n iver sities in E n gla n d w ill specia lize m or e in or der
to com pete a n d su r vive. Th e a bility of som e
in stitu tion s to offer a w ide r a n ge of su bject
ca te gor ies is jeopa r dized. In cr ea sed specia liza tion ca n , h owever, a lso br in g a bou t
econ om ic a n d edu ca tion a l ben efits. Th e cr u x
of th e deba te is wh a t do u n iver sities, collectively a n d in dividu a lly, envisa ge a s th e pla ce
a n d position of th e h igh er edu ca tion sector in
th e econ om y a n d society of th e UK. Ha s th e
com m ittee of vice-ch a n cellor s a n d pr in cipa ls
(CVCP ) a ctively en ga ged in th is deba te?
Fitting the appropriate resources
With in th e com petitive envir on m en t, bein g
m or e cu stom er led im plies th at r esou r ces a r e
m or e a ppr opr ia tely ta r geted to r eleva n t n ich e
m a r k ets. Ma r k ets a r e n ow iden tified by th e
ch a r a cter istics of th eir con su m er s a n d
segm en ted a ccor din g to n ich e tr a its. Alter n a tively th ey ca n a lso be defin ed by th e or ga n iza tion a s a fu n ction of th eir cor e com peten cies.
Th is is wh y Disn ey w a s a ble to gr ow in com e
fr om its copyr igh ts even th ou gh th e or igin a l
m a ter ia l, i.e. ca r toon s, h a d pa st th e declin e
ph a se of th e pr odu ct life cycle. Accor din g to
Collis a n d Mon tgom er y (1995) r esou r ces ca n
dir ect a com pa n y’s per for m a n ce if th ey a r e
a ccu r a tely iden tified a n d a ssessed. Th e
r esou r ces or a ssets ca n be pa r ticu la r com peten cies a n d th ey deter m in e th e efficien cy a n d
effectiven ess w ith wh ich a n or ga n iza tion ca n
per for m its fu n ction a l a ctivities. Or ga n iza tion a l cu ltu r e ca n be on e of th ose a ssets if it
pr ovides coh esion a n d dr ives th e or ga n iza tion
in th e dir ection of its objectives.
For u n iver sities, “wh er e a colle gia te system
oper a tes, dr iven by con sen su s … h igh a ca dem ic sta n da r ds a n d a n eth os of pr ofession a l
in te gr ity pr eva il” (Willia m s, 1992). Bu t it h a s
on ly been oper a tive in r esou r ce-plen ty en vir on m en ts; in dividu a ls r esor tin g to defen din g
ter r itor ies in tim es of sca r city. In th eor y, a
colle gia te u n iver sity sector wou ld in flu en ce
its en vir on m en t cr ea tin g gr ea ter equ ity a n d
dem ocr a cy w ith in society. In pr a ctice, a
[ 287 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 288 ]
colle gia te u n iver sity ba sed on con sen su s a n d
tr u st wou ld save m on ey a n d th er efor e be
m or e efficien t a lso. Colle gia lity is pr oposed
a s a m ea n s of in cr ea sin g cor e com peten cies
a n d n ot ju st a s a lu xu r y in tim es of plen ty.
Th e or ga n iza tion a l ca pa city to oper a te collectively in h igh er edu ca tion ca n a ctu a lly be
u sed to dr ive a differ en tia ted ser vice. For
exa m ple wh a t wou ld com pa n ies pay for
edu ca tion a n d tr a in in g if you cou ld offer th em
tr u st-ba sed m a n a gem en t; m otiva ted m a n power. co-oper a tive cu ltu r e a n d dem on str a te
th a t it wor k s? Bla ck a n d Boa l (1994) con sider
n ebu lou s, in ta n gible a ssets su ch a s tr u st a s
va lu a ble str a tegic fa ctor s wh ich th ou gh pr eciou s a r e n ot tr a da ble. Ar r ow (1974) per ceived
tr u st, goodw ill, loya lty a s econ om ic exter n a lities; of r ea l va lu e, wh ich in cr ea se efficien cy
a n d en h a n ce com petitive a dva n ta ge bu t ca n n ot be bou gh t. Th is is deba ta ble: th e feu da l
system a n d doctr in e of sin ecu r es wer e both
fin e exa m ples of ba r ter ed loya lty a n d tr u st.
Collis a n d Mon tgom er y (1995) a sk a ver y
u sefu l qu estion . Wh a t m a k es a r esou r ce
va lu a ble? Th ey in tr odu ce th e con cept of
a ppr opr ia bility in to th e tr a dition a l econ om ic
equ a tion of su pply a n d dem a n d. Th e va lu e of a
r esou r ce is dir ectly r ela ted to its su pply a n d
its r ela tive dem a n d. A specia lized r esou r ce,
e.g. a pr ofessor, w ill be m or e va lu a ble th e m or e
a ppr opr ia te h e/ sh e is for a pa r ticu la r
fu n ction . In th e con text of h igh er edu ca tion ,
tea ch in g a n d r esea r ch sk ills a r e fu n da m en ta lly differ en t. Th e va lu e of a n en ter ta in in g
tea ch er wh o ca n k eep a lectu r e h a ll of 200
stu den ts in ter ested a n d lea r n in g is on a pa r
w ith a pu blish ed r esea r ch er. Th e fin a n cia l
va lu e ca n be a ppr oxim a ted by a ssessin g
pr opor tion s of fees or n et con tr a ct in com e a n d
offsettin g for dr op-ou t r a tes, exa m in a tion
gr a des a n d oth er m ea su r es of stu den t/ clien t
feedba ck . Th er e is, of cou r se, th e da n ger to be
avoided of m ea su r in g th e u n m ea su r a ble a n d
som e edu ca tion ists a r gu e th a t th e edu ca tion
ser vice in gen er a l is n ot well disposed to
qu a n tita tive a n a lysis (McIllh a ton et al., 1993)
On th e oth er h a n d it wou ld be u n sou n d n ot to
m ea su r e wh a t ca n be.
If h igh er edu cation in stitu tion s a r e to
com pete m or e a ggr essively in th e con tr olled
HE F CE m a r k et for tea ch in g a n d r esea r ch ,
th ey n eed to h ave a ssessm en t m ech a n ism s
wh ich a ccu r a tely deter m in e th e a r ea s of com pa r a tive com peten ce a n d excellen ce on wh ich
to ba se su ccessfu l r esou r ce-led str a tegies.
Neith er sh ou ld a n excellen t r esou r ce ba se
lea d to com pla cen cy; th e com peten ce m ay be
ea sily im ita ted or su bstitu ted by a differ en t
r esou r ce wh ich gives a sim ila r ser vice. So
stu den ts m ay be ju st a s satisfied w ith a n in ter a ctive video a s w ith a r en ow n ed pr ofessor.
Th e r esou r ce m ay a lso be th e in stitu tion ’s
r epu ta tion . Th is is a good exa m ple of a collective cor por a te r esou r ce n ot belon gin g to a n y
pa r ticu la r depa r tm en t; h en ce lea st likely to be
defen ded by a n y depa r tm en t. It is possible to
a ssess th e va lu e of th e r esou r ce, wh eth er
ta n gible or in ta n gible, by a sk in g h ow a ppr opr ia te it is for th e job it is r equ ir ed to do. To
u n der pin in stitu tion a l dir ection a n d m ission
for m u la tion , r esou r ces cou ld be su bjected to
th e a ssessm en t ou tlin e sh ow n in F igu r e 1.
Th is a ppr opr ia bility in dex a sk s a bou t th e
u sefu ln ess of th e r esou r ce in th e con text of
th e existin g m ission a n d objectives. Oth er
im por ta n t r esou r ces wh ich n eed to be a dded
to th e equ a tion a r e fin a n ce a n d IE E P (in telligen ce, exper tise, en ter pr ise a n d pr oblem
solvin g) (Ta ble II). Wh ile fin a n ce is n ot difficu lt to m ea su r e, IE E P r equ ir es a m or e su bjective a n a lysis.
Th is th en gives a m ea su r e of th e a dequ a cy/
in a dequ a cy of th e r esou r ce m ix. For exa m ple,
a m a th s tu tor deliver in g a bu sin ess com m u n ica tion s m odu le w ith lectu r es fr om 7-9 a .m . in
th e ch em istr y la bor a tor y a n d wor k sh ops
fr om 1-3 p.m . in a com pu ter la b w ith on ly 286s
bein g wh olly fin a n ced fr om th e ca pita l equ ipm en t fu n d (in ten ded to u pda te th e 286s) n ot
on ly gives a n in dica tion of th e a ppr opr ia bility of th e pa ck a ge bu t a lso th e IE E P th a t wen t
in to pu ttin g it togeth er !
Th e im plica tion s for th is type of a ppr oa ch
to a r esou r ce-ba sed a ssessm en t of a n or ga n iza tion ’s com peten ce in its in du str y or sector
a r e th r eefold. F ir st, objectives n eed to be a n d
ca n be pr ior itized w ith th e in for m a tion
obta in ed; th e m ost a ppr opr ia te r esou r ces
bein g a lloca ted to th e h igh est pr ior ity objectives. Secon d, th e exten t of lever a ge w ill
depen d on th e de gr ee of a ppr opr ia ten ess of
th e lea st flexible r esou r ce, e.g. ca n th e tea la dy give th e lectu r e on Goedel’s Th eor u m a t
a day’s n otice if pu sh ed? Alter n a tively ca n th e
vice-ch a n cellor or der th e r efr esh m en ts for
th e Ger m a n dele ga tion if th e secr eta r y is
a bsen t? Th e ju xta position of th ese two im plica tion s lea ds to a n oth er econ om ic con cept;
th a t of m a r gin a lity. It is a t th e m a r gin , i.e. th e
Table II
Me asure s o f financ e and IEEP
Finance
IEEP
Availability immediately
Curric ulum quality
Available soon
Curric ulum originality
Needs head of sc hool
approval
Modes of assessment and
advic e
No funds available
Level of administrative
support
Available at differing rate of Log of c lient requests and
return
responses
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
Figure 1
Appro priability inde x: an e xample
Service : Inte rnatio nal Busine ss Co mmunic atio n Mo dule
Level: Unde rgraduate Ye ar 1
Number: 1 5 0 Full-time
Completed by: [c ould be lec turer, programme leader, student group, etc .]
Resources
Very good
Staff
Pro f. marke ting
Small busine ss c o nsultant
Le c ture r: c o mmunic atio ns
Se nio r le c ture r: Co mm.
Se nio r le c ture r: strate gy
*
*
Space
Le c ture the atre
Classro o m
Cante e n
Bo ardro o m
Equipment
Wo rdpro c e sso rs
Pe ntiums
Te le pho ne s/ faxe s
Inte rne t ac c e ss
Good
Adequate
Inadequate
Poor
Useless
*
*
*
*
*
*
*
*
*
*
*
Time
7 – 9 am
1 1 – 1 pm
5 –7 pm
9 – 1 1 pm
1 1 pm – 1 am
*
*
*
lowest pr ior ity a n d th e lea st pr ogr a m m especific r esou r ce th a t th e exten t of com petitive a dva n ta ge ca n be m ea su r ed. Th e issu e
becom es on e of flexibility ver su s specia liza tion .
Th e th ir d im plica tion is th a t th e de gr ee of
su ccess becom es a fu n ction of th e flexibility
of specific r esou r ces a n d th e exper tise of
gen er a l r esou r ces. In ch ess, paw n s ca n ta k e
th e Kin g a n d th e Qu een is th e m ost flexible
r esou r ce on th e boa r d. Th is in dica tes th a t
even w ith in a m ilita r istic, offen sive/ defen sive pa r a digm th e specia list/ fl exibility per spective is r eleva n t, i.e. h u m a n r esou r ce com peten ce a n d its fi t w ith oth er r esou r ces
sh ou ld u n der pin a ll types of str a te gic
per spective.
The mix – network factors and
services
F u r th er wor k on cor e com peten cies by
Sn yder a n d E ber lin g (1995) su ggests th a t a
*
*
u n iver sity sh ou ld look a t its system of a ctivities a n d a ssess th e va lu e th a t th ey a dd n ot
on ly to th e pr esen t r even u e bu t to th e fu tu r e
poten tia l of th e or ga n iza tion . Th is is wh y
r epu ta tion is im por ta n t a n d wh y a lon ger ter m view th a n th e pr esen t five-yea r cycle
n eeds to dr ive th e in ter n a l a lloca tive pr ocess.
Th e m essa ge is r epea ted: su ccess depen ds
on th e cor r ect iden tifica tion of cor e com peten ce. It is n ot en ou gh to say th e ser vice or
r epu ta tion is good. In stea d a sk : for wh a t ser vices does th is in stitu tion h ave a good r epu ta tion ? Iden tify in deta il wh a t th ose ser vices
a r e, h ow th ey a r e deliver ed a n d h ow th ey a r e
r eceived. If th er e is a cor e com peten ce to
issu e de gr ees a n d diplom a s, wh a t m a k es th is
on e a n y m or e desir a ble th a n th e n ext? How
sh ou ld its wor th be m ea su r ed? Is th e va lu e of
th e de gr ee em ploym en t depen den t?, i.e. does
it h ave va lu e in th e la bou r m a r k et? Does it
h ave in tr in sic va lu e? Ar e stu den ts w ith th is
de gr ee m or e com peten t th a n th e n ext? How
ca n th is be visibly dem on str a ted?
[ 289 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 290 ]
P r ovidin g qu a lifica tion s in m a n y a ca dem ic
a r ea s r equ ir es a n a n a lysis of cor e com peten cies wh ich iden tifies th e syn er gies between
ser vices; so th a t even if on e ser vice is n ot
h igh ly pr ofi ta ble it is ea sier to pr ovide
beca u se it ca n be sou r ced fr om th e in pu ts to a
ser vice wh ich is h igh ly pr ofi ta ble. For bu sin ess th is is a dr a m a tic r ein ter pr eta tion of a
“dog”-type pr odu ct/ ser vice a n d th e option to
divest m ay be m ista k en . McAleer a n d
McHu gh (1994) con sider th is for u n iver sities
w ith in th e fr a m ewor k of Ma ister ’s m odel of
th e pr ofession a l ser vice fir m . An oth er
su ggestion is n ot to im a gin e a n en dless list of
cor e com peten ce a ctivities. A cor por a tion
w ill on ly h ave on e or two. A u n iver sity on th e
oth er h a n d h a s to decide fir st wh eth er to pu t
a ca dem ic objectives befor e com m er cia l on es,
a n d h ow m u ch com m er cia l decision s a r e
r equ ir ed to u n der pin th ese goa ls.
Bla ck a n d Boa l (1994) ta k e a m or e in ten sive
look a t h ow th ese syn er gies ca n be iden tified.
Th ey pr opose a dyn a m ic m odel of fa ctor
n etwor k s wh ich in clu des in ter fa ctor r ela tion sh ips. Asset fl ow s n eed m ea su r in g a s m u ch a s
a sset stock s. Th e su ggestion is th a t th e m or e
com plex th e in ter -r ela tion sh ips between
fa ctor s, th e m or e difficu lt it is to im ita te a n d
th e r esou r ce n etwor k becom es m or e va lu a ble.
Wh er e a r esou r ce is a sim ple fa ctor n etwor k ,
it m ay n ever th eless be va lu a ble if it is h idden
or over look ed. On ce exposed its va lu e er odes
qu ick ly.
System r esou r ces a r e iden tified a s com plex
n etwor k s wh ich a r e socia lly cr ea ted. Th is is a
con str u ctive m ea su r e of or ga n iza tion a l cu ltu r e viewed a s a ser ies of va lu a ble system
r esou r ces. Aga in it im plies th a t th e in ter n a l
con figu r a tion of th e or ga n iza tion ca n pr ovide
va lu a ble a dva n ta ges in th e m a r k etpla ce.
Un iver sities h ave a lw ays h a d a colle gia te
or ga n iza tion a l m odel on wh ich to ba se th e
gr ow th of va lu a ble socia l-fa ctor n etwor k s.
Bu t Gu n n (1995) w a r n s a ga in st th e in sidiou s
im position of pa tr on a ge over pr odu ctivity a s
th e cr iter ion of su ccess in a colle gia te or ga n iza tion .
F r om a str a te gic per spective, n ote h a s to be
ta k en of h ow to m ea su r e th ese va lu a ble
r esou r ces wh en iden tifyin g a ppr opr ia te cor e
com peten cies. An exa m ple of cor e com peten cy m igh t be th e a bility of th e a pplied
scien ce depa r tm en t to r a ise a postgr a du a te
pr ogr a m m e in a n im a l welfa r e m a n a gem en t
a n d secu r e 100 su ita ble stu den ts in its fir st
yea r. Th e essen ce of th a t com peten ce wou ld
be th e a bility to wor k togeth er, to be in spir ed
a n d to h elp ea ch oth er. Th e va lu e is a tta ch ed
to th e fit between th e r esou r ces, str a te gy a n d
th e en vir on m en t.
Cor e com peten cies sh ou ld be in tr in sica lly
flexible a n d a ble to su ppor t m u ltiple ser vices.
Com peten cy sh ou ld a lso r epr esen t a u n iqu e
ca pa bility, n ot ea sily im ita ted. Aga in or ga n iza tion a l cu ltu r e cou ld be on e su ch a sset. In
pr a ctica l ter m s, decision m a k er s n eed to h ave
tools wh ich r equ ir e th em to be m u ch m or e
specific a bou t th eir m a in a ctivities a n d th e
com pa r a tive a dva n ta ge th ey br in g to th e
in stitu tion . Activity-ba sed ben ch m a r k in g
(pr oof th a t th e a ctivity does a dd va lu e) a n d
em ployee a n d a sset distr ibu tion ca n be
a ccom m oda ted in a n a ppr opr ia bility in dex.
Th is tool cou ld be developed in con ju n ction
w ith th e n etwor k m a ppin g m en tion ed a bove.
Th is wou ld a id th e developm en ta l str u ctu r e
of th e or ga n iza tion a s it lin k s to its cu r r en t
wor k dem a n ds (O’N eill, 1994). In dividu a l a n d
tea m developm en t cou ld be a ccom m oda ted
w ith in th e gr ea ter diffu sion of con tr ol to th e
oper a tin g per iph er y of th e u n iver sity a s
obser ved by Ha n dy (1989) in th e com m er cia l
m a n a gem en t en vir on m en t a n d bein g pu r su ed
a s a m a cr o-econ om ic policy by cen tr a l
gover n m en t (Koga n , 1988).
Atten tion ca n be given to r edefin in g th e
cor e com peten cies. Th is r edefin ition is th e
oth er side of th e coin . Wh a t a r e clien t per ception s of th e ser vice th ey r eceive? Wh o a r e th e
u n iver sity’s m a in clien ts? Th e HE F CE pr ovides 50 per cen t of th e in com e to th e UK
h igh er edu ca tion sector ; a ddin g th e r esea r ch
gr a n ts gives a n oth er 12 per cen t a n d gover n m en t fu n ds th r ou gh th e loca l edu ca tion
a u th or ities (LE As) a fu r th er 12 per cen t
(HE F C, 1996b). Sh ou ld th ey th er efor e con cen tr a te on th eir r ole a s a gen ts in a pr in cipa l/
a gen t fr a m ewor k ?, i.e. sh ou ld u n iver sities a ct
a s a gen ts for th e gover n m en t a n d pr ovide th e
ser vice th e gover n m en t r equ ir es, i.e. tr a in in g
for em ploym en t a n d a pplied r esea r ch to
gen er a te n ew in du str y?
An oth er view is th a t a s in depen den t in stitu tion s, u n iver sities sh ou ld lea d a ca dem y
a n d edu ca tion policy in itia tives. Th ese ba sic
issu es em ph a size th e dir ection in wh ich ea ch
in stitu tion w ill tr avel in to th e fu tu r e. If gover n m en t-fu n ded stu den ts br in g in less
in com e th a n over sea s stu den ts, sh ou ld th e
la tter be offer ed a better ser vice? Ser vice
differ en tia tion in h igh er edu ca tion is on e of
th e issu es wh ich u n der pin th e th ir d u n iver sa l
or ga n iza tion a l pr ocess objective – equ ity.
Mor e specifica lly, equ ity is a pr in cipa l for a ll
pu blic-sector in stitu tion s wh ich h a s been
u n der m in ed by th e com petitive im per a tive.
Informing the strategy process in
higher education
Th e effects th a t a r e-th in k of pu r pose ca n
h ave on th e str a te gic in ten t of a u n iver sity
sh ou ld cr ea te ch a n gin g pa tter n s in its
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
str u ctu r e, system s a n d pr ocesses. Th e for m er
a n d th e la tter a r e dir ectly con tr olled by
execu tive dir ectives. Th e or ga n iza tion a l
system , h owever, is th e lin ch pin a n d if th e
th r ee a r e n ot con gr u en t th en str a te gies
ca n n ot wor k a n d objectives a r e n ot a ch ieved.
If a ppr opr ia te cor e com peten cies a r e to be
iden tified, th en r esou r ces, in th e fir st pla ce,
n eed to be a lloca ted to th e ta sk . In ter n a l
a u dits a r e on e w ay of a ch ievin g a deta iled
descr iption of wh a t th e in stitu tion is doin g.
Th is ca n be en h a n ced by u sin g tools of a n a lysis su ch a s th e a ppr opr ia bility in dex a n d th e
system s-m a ppin g tech n iqu es a s in dica ted.
Th ese com posite a n a lyses ca n u n der pin a
str u ctu r a l fr a m ewor k for th e m ission sta ted,
ba sed on th e r ecogn ized a ppr opr ia te cor e
com peten cies. Th is does n ot n ecessa r ily su ppor t on e sin gle h ier a r ch ica l str u ctu r e. Th er e
is a lso th e possibility th a t ea ch em er gen t
se gm en t of a ctivity w ill r equ ir e its ow n
a ppr opr ia te str u ctu r e. A low -cost con ven tion a l a r ea of a ctivity m ay r equ ir e a m ech a n istic h ier a r ch y. Sim ila r ly a differ en tia ted
h igh -in com e section m ay r equ ir e m or e in dividu a l a u ton om y. Th is br in gs th e in stitu tion
in to th e r ea lm s of th e m u ltiver sity (Livin gston e, 1974) a s well a s th e pr ofession a l ser vice
fir m . Bu sin ess pa r a llels a r e r ecogn ized in
m u lti-pu r pose globa l division a lized cor por a tion s or in globa l bu sin ess system s oper a tin g
th r ou gh n etwor k s r a th er th a n h ier a r ch ies.
Th e r esou r ce-ba sed view (RBV) of bu sin ess
clea r ly iden tifi es th e pivota l position of
com peten cies in bu ildin g com petitive
a dva n ta ge. Mor e pa r ticu la r ly, com plex,
h idden a n d in ta n gible a sset flow s wh ich
ca n n ot be ea sily r eplica ted pr ovide a n or ga n iza tion w ith th e poten tia l for su ccess. Th is is
th e m ost n oticea ble wh er e th e a sset fl ow s a r e
a ppr opr ia te to th e m a r k ets th a t th ey oper a te
in . In h igh er edu ca tion , on e of th e m ost va lu a ble a sset flow s is system ic n etwor k s of
socia lly cr ea ted tea m s of pr ofession a ls. Th ese
a ssets a r e m a de ava ila ble m or e r ea dily w ith in
a colle gia te fr a m ewor k wh ich is ba sed on
pr ofession a l con sen su s. It is im por ta n t to
iden tify wh a t fa ctor s cr ea te a n d dr ive a n
effective colle gia te system oper a tin g w ith in a
com petitive envir on m en t.
T h e im p lica t ion for t h e p r ocesses w h ich
a r e est a blish ed t o d issem in a t e t h e r esou r ces
for t h e ob ject ives in t en d ed is a lso a com p lex
issu e. Alloca t in g r esou r ces t o p r ior it ized
a ct iv it ies in t h e p r esen t a n d t h e fu t u r e is
im p or t a n t . Wh a t p r oced u r es a r e t o b e in st it u t ed for t h e a lloca t ion of r esou r ces is u su a lly on ly d ir ect ed by t h e execu t ive t o t h e
d e p a r t m en t a l level. Mor e n ot ice cou ld b e
t a k en of t h e p ossib ilit y of r esou r cin g n et wor k s t h r ou gh a m or e in for m a l st r u ct u r e.
In for m a lit y d oes n ot n ecessa r ily im p ly
u n a ccou n ta bility. Rigor ou s pr ocedu r es for
a ccou n tin g for expen ditu r e a r e a lw ays n ecessa r y in a pu blic-sector in stitu tion . However,
th e a ccou n tin g sh ou ld give som e m ea su r e of
u se of oth er r esou r ces besides fi n a n ce a n d
cou ld th er efor e h igh ligh t over - or u n der ca pa city of th ese r esou r ces.
Conclusion
Th is a r ticle h a s h igh ligh ted th e pr eoccu pa tion of m oder n str a te gic th in k in g w ith
r esou r ces a n d com peten ces. It is a n a ppr oa ch
wh ich ca n a id th e better a n a lysis of th e cor por a tion ’s a bility to com pete su ccessfu lly. In stitu tion s of h igh er edu ca tion a r e expected to
in cr ea se th e com petitive n a tu r e of th eir a ctivities w ith in th e en vir on m en ta l fr a m ewor k
wh ich dem a n ds con tin u ou s efficien cy ga in s.
E fficien cy a lon e m ay su ggest th a t su ch in stitu tion s look m or e closely a t cost-effective
u n iver sa l m odels of edu ca tion .
On th e con tr a r y, it m ay be th a t a u n iver sity
ca n a ch ieve su ccess by differ en tia tin g its
ser vices on th e ba sis of iden tified cor e com peten cies wh ich a r e a ppr opr ia te to th e differ en t
m a r k ets it ser ves. As a n a id to iden tifyin g
th ese cor e com peten cies two tech n iqu es a r e
su ggested. System ic n etwor k m a ppin g a n d
a ppr opr ia bility in dexin g of a r ea s of h igh er
edu ca tion a ctivity wou ld pr ovide a gr ea ter
de gr ee of a ccu r a cy r equ ir ed to in for m th e
str a te gic pla n n in g exer cise. Mor e r esea r ch is
r equ ir ed to r efin e a n d a da pt th ese tech n iqu es
to m a k e th em a ccessible a n d to im pr ove th eir
a pplica bility. A stu dy to in vestiga te a pplica tion a cr oss su bject a n d a ctivity cen tr es in
differ en t u n iver sities wou ld pr ovide eviden ce
of va lidity a n d r elia bility. Also r esea r ch is
r equ ir ed to iden tify th e pa th w ays by wh ich
th is in for m a tion ca n be u sed to in for m th e
a lloca tion pr ocess on a n on goin g ba sis.
Th ese tech n iqu es wou ld gen er a te a better
pictu r e of th e dir ection in wh ich th e or ga n iza tion sh ou ld h ea d a n d so m a k e th e m ission
m or e a ch ieva ble. It wou ld a lso im pr ove th e
in stitu tion ’s self-con sciou sn ess by cr ea tin g a
better pictu r e of its distin ctive ch a r a cter istics. F u r th er to th is it wou ld in for m th e
execu tive of th e m ost a ppr opr ia te str u ctu r e to
a dopt to foster su ccessfu l com petitive a dva n ta ge in its differ en tia ted system s, wh eth er it
be colle gia te, bu r ea u cr a tic or fu n ction a l.
P r ocedu r es for r esou r ce a lloca tion wou ld,
th er efor e, va r y a ccor din g to th e str u ctu r a l
a n d system ic iden tity a n d dir ection of ea ch
a r ea of a ctivity. Th e n eed to foster a n over a ll
coh esion in th e in stitu tion becom es th e n ew
execu tive im per a tive r a th er th a n th e r equ ir em en t to over see a n d pla n a ll su bor din a te
a ctivities.
[ 291 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 292 ]
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education: methods for analysis
Geraldine Clarke
Le c ture r, De Mo ntfo rt Unive rsity Busine ss Sc ho o l, Le ic e ste r, UK
Outlines the imperative of
higher education organizations to remain in the forefront of strategic planning
thinking. They are the breeding ground for innovative
approaches to competitive
and co-operative advantage in
the commercial world. Attention is drawn to models of
higher education organization
which have been matched by
similar strategic paradigms in
business. The growing popularity of supply-side methods
of competitiveness is investigated in the context of the
collegiate system of higher
education. Core competences
are now as important as
customer focus in strategic
planning. Core competences
relate to all resources that a
university has. Appropriability
indices give a measure of how
institutions can begin to
measure some of their core
competences from the ground
up. Another method for
understanding and assessing
core competences is to apply
system network mapping.
System networks are complex
webs of interrelationships
between staff and other
facilities which give the organization valuable competitive
advantage and which are not
easily imitated.
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [ 1997] 2 8 6 –2 9 2
© MCB Unive rsity Pre ss
[ ISSN 0951-354X]
[ 286 ]
Introduction
With in a n ew globa l envir on m en t, ch a r a cter ized by r a pid ch a n ge, in ten se in for m a tion
flow s a n d in cr ea sin g com petition th r ou gh th e
r edu ction of ba r r ier s to tr a de a n d exch a n ge,
h igh er edu ca tion in stitu tion s, pa r ticu la r ly in
th e UK, a r e slow ly em er gin g a s or ga n iza tion s
dr iven by th e com m er cia l im per a tive of
m a r k et-led for ces. Yet th eir str a te gies for
a lloca tin g r esou r ces a r e em bedded in m odels
of h igh er edu ca tion or ga n iza tion s a s pu blic
in stitu tion s, r a th er th a n a s com m er cia l
or ga n iza tion s.
Wh ile it wou ld be str a igh tfor w a r d to
a dvoca te th a t u n iver sities ta k e a m or e
pr ogr essive com m er cia l a ppr oa ch to r esou r ce
a lloca tion th a n h a s been th e ca se in th e pa st,
th is wou ld den y th e in fl u en ce th a t su ch
in stitu tion s, pa r ticu la r ly th r ou gh th eir
bu sin ess sch ools, h ave h a d on th e th in k in g
a n d bu sin ess a ppr oa ch of execu tive officer s
a n d dir ector s of com petitive or ga n iza tion s.
Per h a ps it m igh t be a qu estion of “physicia n
h ea l th yself ” if it is su ggested th a t u n iver sities ta ke a lea f ou t of th eir ow n bu sin ess
edu ca tion book s. Th is a r ticle, h owever, a r gu es
qu ite th e opposite. Th e cu r r en t em er gin g
pa r a digm of bu sin ess str a tegy is th e a n a lysis,
r eten tion a n d exploitation of cor e com peten ces
to a ch ieve, exten d a n d m a in ta in com petitive
a dva n ta ge. Th is is m u ch m or e a m odel of
h igh er edu ca tion collegia te or ga n iza tion th a n
a n y efficien cy/ effectiven ess pa r a m eter s of
com m er cia l r esou r ce a lloca tion . As su ch it is,
th er efor e, su ggested th a t u n iver sity m odels of
r esou r ce a lloca tion , especia lly th e collegia te
a ppr oa ch , if developed sen sitively ca n be m or e
u sefu l to in for m n ot on ly r esou r ce a lloca tion
in u n iver sities bu t a lso to lea d developm en t of
n ew r esou r ce-ba sed a ppr oa ch es for com m er cia l com petitive a dva n ta ge.
Given th a t th e str a te gy pr ocess sta r ts w ith
a n a n a lysis of ava ila ble r esou r ces befor e
developin g m ission sta tem en t a n d possible
pa th tr a jector ies, th is a r ticle explor es th e
u sefu ln ess of two m ea su r es of r esou r ce eva lu a tion wh ich w ill better in for m th e str a te gym a k in g pr ocess in u n iver sities wh ich oper a te
in a colle gia te en vir on m en t exten din g pa r ticipa tion a n d decision m a k in g to a ll m em ber s
of th e or ga n iza tion . Th e fir st tech n iqu e is th e
u se of a ppr opr ia bility in dices to better u n der sta n d th e str en gth s a n d wea k n esses of th e
ser vice offer in g. Th e secon d tech n iqu e is
system n etwor k m a ppin g to iden tify com plex
cor e com peten cies wh ich a r e n ot ea sily
r epla cea ble a n d a r e a lso va lu a ble beca u se
th ey a r e n ot ea sily im ita ted. Th ese two tech n iqu es ca n be u sed eith er a s a self-a ssessm en t
exer cise for in dividu a ls a n d gr ou ps w ith in a
u n iver sity or a s a n a u dit tool to in for m execu tive decision m a k in g.
Past experience
Alloca tive m ech a n ism s h ave a lw ays been
der ived fr om th e over r idin g str a te gic pa r a digm . Th is is ta k en to m ea n th e in ter pr eta tion a n d in ter n a l r espon se of or ga n iza tion s to
th eir exter n a l en vir on m en t in pu r su it of
th eir goa ls. For exa m ple scien tific m a n a gem en t cr ea ted a fu n ction a l str u ctu r e wh ich
con cen tr a ted on efficien cy. In pa r a llel,
va r iou s tea ch in g m odels wer e a ssessed on th e
ba sis of th eir costs (see Ta ble I) a n d fi t in w ith
th is a lloca tive efficien cy dir ective.
Su ch a n efficien t m ech a n ism is ch a r a cter ized by a few sen ior bu dget h older s m a k in g
th e a lloca tive decision s (Min tzber g, 1991a ).
Still ta k en a s th e n or m for str a te gies em ph a sizin g efficien cy, som e u n iver sities wor ldw ide h ave yet to a dopt a m or e m oder n
a ppr oa ch . Gu n n (1995), in pa r ticu la r, a r gu es
for cefu lly for a ch a n ge aw ay fr om h ier a r ch y
a n d bu r ea u cr a cy for th e sa k e of th e cor e ser vice a n d com petitive a dva n ta ge.
Oth er str a te gic pa r a digm s a pplica ble to
u n iver sities in clu de bu r ea u cr a tic u n iver sa lism (pu blic sector, for m a l, r u le-bou n d,
u n iver sa l a n d im per son a l) wh ich ca n lea d to
politica l con fl ict (m ilita r y ta ctics ba sed on
possession , a u th or ity a n d r igh t to m a k e
decision s) (Ba ldr idge, 1971; Beck er a n d
Koga n , 1980; P feffer a n d Sa la n cik , 1974) a n d
m u ltiver sa l dem ocr a cy (Cla r k , 1983) wh ich
Min tzber g (1991b) r efer r ed to a s r eleva n t for a
m a tu r e, diver sified bu sin ess w ith m a n y
pr odu ct/ ser vice lin es.
Mor e r ecen t com m er cia l r esea r ch (Ha m el
a n d Pr a h a la d, 1993) a sk s why som e com pa n ies
r edefin e th e in du str ies in wh ich th ey oper ate,
i.e. wh at is im por ta n t a r e th e m a n a ger ia l
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
fr a m es of r efer en ce. Th ese fr a m es of r efer en ce
a r e con sider ed to be sou r ced fr om bu sin ess
sch ools a n d a r e th e dr iver s wh ich cr eate
im por ta n t differ en tia l th in k in g in th e m in ds of
today’s m a n a ger s. On th e oth er side of th e
equ ation it is on ly possible to con tem plate
a lter n ative str ategies w ith in th e w ider con text
of a better - edu cated a n d m or e in for m ed wor k for ce a lso sou r ced fr om u n iver sities. Th er efor e
h igh er edu cation is a n in pu t in to both th e
in ter n a l a n d exter n a l dim en sion s of cor por ate
r ea lity. Con sequ en tly it is r ecipr oca lly im por ta n t for u n iver sities to con sider th eir a ppr oa ch
to str ategy in th e ligh t of bu sin ess exper ien ce.
Mor e pa r ticu la r ly, th e High er Edu cation Fu n din g Cou n cil for En gla n d (HEF CE) is con sider in g a gr eater u se of in stitu tion a l str ategy statem en ts to in for m its r esou r ce a llocation to fu n d
tea ch in g. It r equ ir es th at th e u n iver sity’s
m ission statem en t n ow gives:
a clea r idea of ea ch in stitu tion ’s pu r pose a n d
distin ctive ch a r a cter istics (HEF CE, 1996a ).
Wh ile th e fu n din g cou n cil h a s a lways m a de it
explicit th at th e in ter n a l a llocation of
r esou r ces sh ou ld in n o way r eflect th e Cou n cil’s a llocation to th e in stitu tion ; th e Cou n cil’s
objective (HEFC, 1996b) is to fu n d sim ila r a ctivities at a sim ila r r ate a cr oss th e cou n tr y. Th e
pr esen t fu n din g m eth od wa s, in pa r t, in h er ited
fr om pr eviou s bodies su ch a s th e Un iver sity
Gr a n ts Com m ittee (UGC) a n d th e Polytech n ic
a n d Colleges Fu n din g Cou n cil(PCFC) wh ich
fu n ded th e sa m e pr ocess at differ en t r ates.
Th e HE F CE n ow pr oposes th a t in stitu tion s
sh ou ld bid for a ddition a l n u m ber s on th e
ba sis of qu a lity, dem a n d, n a tion a l a n d
Table I
Fo ur instruc tio nal mo de ls o f highe r e duc atio n c o st
Instructional
model
Conventionala
RUM Lb
Programmed independent c
Programmed learningd
Labour
costs
Capital
costs
H
VH
H
H
M
M
M
H
Relative
Relative
labour
labour
Costs of
intensity productivity ouput
H
H
M
M
M
VH
H
H
MH
ML
M
H-VH
Key:
VH = very high; H = high; MH = moderately high; M = moderate; ML = moderately low
a
Traditional mix of lec tures, tutorials and lab work; homogeneous servic e; predic table
outc omes; easy to program
b RUML – Resourc e Utilization Model of Learning – large lec ture groups foc using on
ac ademic exc ellenc e; intensive tutorials, no fringe subjec ts
c Student c entred; broad-framed syllabus, student c hoic e and initiative, more work
stations, staff training in c ounselling and determine timetable with students, e.g.
Lanc aster, NE London
d Keiffer model-distanc e learning staff write lec ture programmes and deliver via media.
Counselling required for non-traditional students, e.g. Open University
Source: Bowers and Douglas (1971)
r e gion a l n eeds (HE F C, 1996c). Th is im per a tive is lik ely to ou tla st wh a tever r ecom m en da tion s th e Dea r in g Com m ittee m a k e. Clea r ly
th e gover n m en t objectives wh ich a r e bou n d
u p in th e HE F CE docu m en t u n der pin a m ove
to a m or e com petitive en vir on m en t in th e
h igh er edu ca tion sector. Th e k ey ph r a se is
“efficien cy ga in s” wh ich h a s, in th e fir st
in sta n ce, ca u sed a r etu r n to th e “m a ch in e
or ga n iza tion ” m en ta lity. Som e u n iver sities
h ave pu lled in power a n d r espon sibility to th e
cen tr e or a pex of th e h ier a r ch y.
As con str a in ed com petition h a s becom e th e
n or m , it is ea sy to u n der sta n d th a t u n iver sities in E n gla n d w ill specia lize m or e in or der
to com pete a n d su r vive. Th e a bility of som e
in stitu tion s to offer a w ide r a n ge of su bject
ca te gor ies is jeopa r dized. In cr ea sed specia liza tion ca n , h owever, a lso br in g a bou t
econ om ic a n d edu ca tion a l ben efits. Th e cr u x
of th e deba te is wh a t do u n iver sities, collectively a n d in dividu a lly, envisa ge a s th e pla ce
a n d position of th e h igh er edu ca tion sector in
th e econ om y a n d society of th e UK. Ha s th e
com m ittee of vice-ch a n cellor s a n d pr in cipa ls
(CVCP ) a ctively en ga ged in th is deba te?
Fitting the appropriate resources
With in th e com petitive envir on m en t, bein g
m or e cu stom er led im plies th at r esou r ces a r e
m or e a ppr opr ia tely ta r geted to r eleva n t n ich e
m a r k ets. Ma r k ets a r e n ow iden tified by th e
ch a r a cter istics of th eir con su m er s a n d
segm en ted a ccor din g to n ich e tr a its. Alter n a tively th ey ca n a lso be defin ed by th e or ga n iza tion a s a fu n ction of th eir cor e com peten cies.
Th is is wh y Disn ey w a s a ble to gr ow in com e
fr om its copyr igh ts even th ou gh th e or igin a l
m a ter ia l, i.e. ca r toon s, h a d pa st th e declin e
ph a se of th e pr odu ct life cycle. Accor din g to
Collis a n d Mon tgom er y (1995) r esou r ces ca n
dir ect a com pa n y’s per for m a n ce if th ey a r e
a ccu r a tely iden tified a n d a ssessed. Th e
r esou r ces or a ssets ca n be pa r ticu la r com peten cies a n d th ey deter m in e th e efficien cy a n d
effectiven ess w ith wh ich a n or ga n iza tion ca n
per for m its fu n ction a l a ctivities. Or ga n iza tion a l cu ltu r e ca n be on e of th ose a ssets if it
pr ovides coh esion a n d dr ives th e or ga n iza tion
in th e dir ection of its objectives.
For u n iver sities, “wh er e a colle gia te system
oper a tes, dr iven by con sen su s … h igh a ca dem ic sta n da r ds a n d a n eth os of pr ofession a l
in te gr ity pr eva il” (Willia m s, 1992). Bu t it h a s
on ly been oper a tive in r esou r ce-plen ty en vir on m en ts; in dividu a ls r esor tin g to defen din g
ter r itor ies in tim es of sca r city. In th eor y, a
colle gia te u n iver sity sector wou ld in flu en ce
its en vir on m en t cr ea tin g gr ea ter equ ity a n d
dem ocr a cy w ith in society. In pr a ctice, a
[ 287 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 288 ]
colle gia te u n iver sity ba sed on con sen su s a n d
tr u st wou ld save m on ey a n d th er efor e be
m or e efficien t a lso. Colle gia lity is pr oposed
a s a m ea n s of in cr ea sin g cor e com peten cies
a n d n ot ju st a s a lu xu r y in tim es of plen ty.
Th e or ga n iza tion a l ca pa city to oper a te collectively in h igh er edu ca tion ca n a ctu a lly be
u sed to dr ive a differ en tia ted ser vice. For
exa m ple wh a t wou ld com pa n ies pay for
edu ca tion a n d tr a in in g if you cou ld offer th em
tr u st-ba sed m a n a gem en t; m otiva ted m a n power. co-oper a tive cu ltu r e a n d dem on str a te
th a t it wor k s? Bla ck a n d Boa l (1994) con sider
n ebu lou s, in ta n gible a ssets su ch a s tr u st a s
va lu a ble str a tegic fa ctor s wh ich th ou gh pr eciou s a r e n ot tr a da ble. Ar r ow (1974) per ceived
tr u st, goodw ill, loya lty a s econ om ic exter n a lities; of r ea l va lu e, wh ich in cr ea se efficien cy
a n d en h a n ce com petitive a dva n ta ge bu t ca n n ot be bou gh t. Th is is deba ta ble: th e feu da l
system a n d doctr in e of sin ecu r es wer e both
fin e exa m ples of ba r ter ed loya lty a n d tr u st.
Collis a n d Mon tgom er y (1995) a sk a ver y
u sefu l qu estion . Wh a t m a k es a r esou r ce
va lu a ble? Th ey in tr odu ce th e con cept of
a ppr opr ia bility in to th e tr a dition a l econ om ic
equ a tion of su pply a n d dem a n d. Th e va lu e of a
r esou r ce is dir ectly r ela ted to its su pply a n d
its r ela tive dem a n d. A specia lized r esou r ce,
e.g. a pr ofessor, w ill be m or e va lu a ble th e m or e
a ppr opr ia te h e/ sh e is for a pa r ticu la r
fu n ction . In th e con text of h igh er edu ca tion ,
tea ch in g a n d r esea r ch sk ills a r e fu n da m en ta lly differ en t. Th e va lu e of a n en ter ta in in g
tea ch er wh o ca n k eep a lectu r e h a ll of 200
stu den ts in ter ested a n d lea r n in g is on a pa r
w ith a pu blish ed r esea r ch er. Th e fin a n cia l
va lu e ca n be a ppr oxim a ted by a ssessin g
pr opor tion s of fees or n et con tr a ct in com e a n d
offsettin g for dr op-ou t r a tes, exa m in a tion
gr a des a n d oth er m ea su r es of stu den t/ clien t
feedba ck . Th er e is, of cou r se, th e da n ger to be
avoided of m ea su r in g th e u n m ea su r a ble a n d
som e edu ca tion ists a r gu e th a t th e edu ca tion
ser vice in gen er a l is n ot well disposed to
qu a n tita tive a n a lysis (McIllh a ton et al., 1993)
On th e oth er h a n d it wou ld be u n sou n d n ot to
m ea su r e wh a t ca n be.
If h igh er edu cation in stitu tion s a r e to
com pete m or e a ggr essively in th e con tr olled
HE F CE m a r k et for tea ch in g a n d r esea r ch ,
th ey n eed to h ave a ssessm en t m ech a n ism s
wh ich a ccu r a tely deter m in e th e a r ea s of com pa r a tive com peten ce a n d excellen ce on wh ich
to ba se su ccessfu l r esou r ce-led str a tegies.
Neith er sh ou ld a n excellen t r esou r ce ba se
lea d to com pla cen cy; th e com peten ce m ay be
ea sily im ita ted or su bstitu ted by a differ en t
r esou r ce wh ich gives a sim ila r ser vice. So
stu den ts m ay be ju st a s satisfied w ith a n in ter a ctive video a s w ith a r en ow n ed pr ofessor.
Th e r esou r ce m ay a lso be th e in stitu tion ’s
r epu ta tion . Th is is a good exa m ple of a collective cor por a te r esou r ce n ot belon gin g to a n y
pa r ticu la r depa r tm en t; h en ce lea st likely to be
defen ded by a n y depa r tm en t. It is possible to
a ssess th e va lu e of th e r esou r ce, wh eth er
ta n gible or in ta n gible, by a sk in g h ow a ppr opr ia te it is for th e job it is r equ ir ed to do. To
u n der pin in stitu tion a l dir ection a n d m ission
for m u la tion , r esou r ces cou ld be su bjected to
th e a ssessm en t ou tlin e sh ow n in F igu r e 1.
Th is a ppr opr ia bility in dex a sk s a bou t th e
u sefu ln ess of th e r esou r ce in th e con text of
th e existin g m ission a n d objectives. Oth er
im por ta n t r esou r ces wh ich n eed to be a dded
to th e equ a tion a r e fin a n ce a n d IE E P (in telligen ce, exper tise, en ter pr ise a n d pr oblem
solvin g) (Ta ble II). Wh ile fin a n ce is n ot difficu lt to m ea su r e, IE E P r equ ir es a m or e su bjective a n a lysis.
Th is th en gives a m ea su r e of th e a dequ a cy/
in a dequ a cy of th e r esou r ce m ix. For exa m ple,
a m a th s tu tor deliver in g a bu sin ess com m u n ica tion s m odu le w ith lectu r es fr om 7-9 a .m . in
th e ch em istr y la bor a tor y a n d wor k sh ops
fr om 1-3 p.m . in a com pu ter la b w ith on ly 286s
bein g wh olly fin a n ced fr om th e ca pita l equ ipm en t fu n d (in ten ded to u pda te th e 286s) n ot
on ly gives a n in dica tion of th e a ppr opr ia bility of th e pa ck a ge bu t a lso th e IE E P th a t wen t
in to pu ttin g it togeth er !
Th e im plica tion s for th is type of a ppr oa ch
to a r esou r ce-ba sed a ssessm en t of a n or ga n iza tion ’s com peten ce in its in du str y or sector
a r e th r eefold. F ir st, objectives n eed to be a n d
ca n be pr ior itized w ith th e in for m a tion
obta in ed; th e m ost a ppr opr ia te r esou r ces
bein g a lloca ted to th e h igh est pr ior ity objectives. Secon d, th e exten t of lever a ge w ill
depen d on th e de gr ee of a ppr opr ia ten ess of
th e lea st flexible r esou r ce, e.g. ca n th e tea la dy give th e lectu r e on Goedel’s Th eor u m a t
a day’s n otice if pu sh ed? Alter n a tively ca n th e
vice-ch a n cellor or der th e r efr esh m en ts for
th e Ger m a n dele ga tion if th e secr eta r y is
a bsen t? Th e ju xta position of th ese two im plica tion s lea ds to a n oth er econ om ic con cept;
th a t of m a r gin a lity. It is a t th e m a r gin , i.e. th e
Table II
Me asure s o f financ e and IEEP
Finance
IEEP
Availability immediately
Curric ulum quality
Available soon
Curric ulum originality
Needs head of sc hool
approval
Modes of assessment and
advic e
No funds available
Level of administrative
support
Available at differing rate of Log of c lient requests and
return
responses
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
Figure 1
Appro priability inde x: an e xample
Service : Inte rnatio nal Busine ss Co mmunic atio n Mo dule
Level: Unde rgraduate Ye ar 1
Number: 1 5 0 Full-time
Completed by: [c ould be lec turer, programme leader, student group, etc .]
Resources
Very good
Staff
Pro f. marke ting
Small busine ss c o nsultant
Le c ture r: c o mmunic atio ns
Se nio r le c ture r: Co mm.
Se nio r le c ture r: strate gy
*
*
Space
Le c ture the atre
Classro o m
Cante e n
Bo ardro o m
Equipment
Wo rdpro c e sso rs
Pe ntiums
Te le pho ne s/ faxe s
Inte rne t ac c e ss
Good
Adequate
Inadequate
Poor
Useless
*
*
*
*
*
*
*
*
*
*
*
Time
7 – 9 am
1 1 – 1 pm
5 –7 pm
9 – 1 1 pm
1 1 pm – 1 am
*
*
*
lowest pr ior ity a n d th e lea st pr ogr a m m especific r esou r ce th a t th e exten t of com petitive a dva n ta ge ca n be m ea su r ed. Th e issu e
becom es on e of flexibility ver su s specia liza tion .
Th e th ir d im plica tion is th a t th e de gr ee of
su ccess becom es a fu n ction of th e flexibility
of specific r esou r ces a n d th e exper tise of
gen er a l r esou r ces. In ch ess, paw n s ca n ta k e
th e Kin g a n d th e Qu een is th e m ost flexible
r esou r ce on th e boa r d. Th is in dica tes th a t
even w ith in a m ilita r istic, offen sive/ defen sive pa r a digm th e specia list/ fl exibility per spective is r eleva n t, i.e. h u m a n r esou r ce com peten ce a n d its fi t w ith oth er r esou r ces
sh ou ld u n der pin a ll types of str a te gic
per spective.
The mix – network factors and
services
F u r th er wor k on cor e com peten cies by
Sn yder a n d E ber lin g (1995) su ggests th a t a
*
*
u n iver sity sh ou ld look a t its system of a ctivities a n d a ssess th e va lu e th a t th ey a dd n ot
on ly to th e pr esen t r even u e bu t to th e fu tu r e
poten tia l of th e or ga n iza tion . Th is is wh y
r epu ta tion is im por ta n t a n d wh y a lon ger ter m view th a n th e pr esen t five-yea r cycle
n eeds to dr ive th e in ter n a l a lloca tive pr ocess.
Th e m essa ge is r epea ted: su ccess depen ds
on th e cor r ect iden tifica tion of cor e com peten ce. It is n ot en ou gh to say th e ser vice or
r epu ta tion is good. In stea d a sk : for wh a t ser vices does th is in stitu tion h ave a good r epu ta tion ? Iden tify in deta il wh a t th ose ser vices
a r e, h ow th ey a r e deliver ed a n d h ow th ey a r e
r eceived. If th er e is a cor e com peten ce to
issu e de gr ees a n d diplom a s, wh a t m a k es th is
on e a n y m or e desir a ble th a n th e n ext? How
sh ou ld its wor th be m ea su r ed? Is th e va lu e of
th e de gr ee em ploym en t depen den t?, i.e. does
it h ave va lu e in th e la bou r m a r k et? Does it
h ave in tr in sic va lu e? Ar e stu den ts w ith th is
de gr ee m or e com peten t th a n th e n ext? How
ca n th is be visibly dem on str a ted?
[ 289 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 290 ]
P r ovidin g qu a lifica tion s in m a n y a ca dem ic
a r ea s r equ ir es a n a n a lysis of cor e com peten cies wh ich iden tifies th e syn er gies between
ser vices; so th a t even if on e ser vice is n ot
h igh ly pr ofi ta ble it is ea sier to pr ovide
beca u se it ca n be sou r ced fr om th e in pu ts to a
ser vice wh ich is h igh ly pr ofi ta ble. For bu sin ess th is is a dr a m a tic r ein ter pr eta tion of a
“dog”-type pr odu ct/ ser vice a n d th e option to
divest m ay be m ista k en . McAleer a n d
McHu gh (1994) con sider th is for u n iver sities
w ith in th e fr a m ewor k of Ma ister ’s m odel of
th e pr ofession a l ser vice fir m . An oth er
su ggestion is n ot to im a gin e a n en dless list of
cor e com peten ce a ctivities. A cor por a tion
w ill on ly h ave on e or two. A u n iver sity on th e
oth er h a n d h a s to decide fir st wh eth er to pu t
a ca dem ic objectives befor e com m er cia l on es,
a n d h ow m u ch com m er cia l decision s a r e
r equ ir ed to u n der pin th ese goa ls.
Bla ck a n d Boa l (1994) ta k e a m or e in ten sive
look a t h ow th ese syn er gies ca n be iden tified.
Th ey pr opose a dyn a m ic m odel of fa ctor
n etwor k s wh ich in clu des in ter fa ctor r ela tion sh ips. Asset fl ow s n eed m ea su r in g a s m u ch a s
a sset stock s. Th e su ggestion is th a t th e m or e
com plex th e in ter -r ela tion sh ips between
fa ctor s, th e m or e difficu lt it is to im ita te a n d
th e r esou r ce n etwor k becom es m or e va lu a ble.
Wh er e a r esou r ce is a sim ple fa ctor n etwor k ,
it m ay n ever th eless be va lu a ble if it is h idden
or over look ed. On ce exposed its va lu e er odes
qu ick ly.
System r esou r ces a r e iden tified a s com plex
n etwor k s wh ich a r e socia lly cr ea ted. Th is is a
con str u ctive m ea su r e of or ga n iza tion a l cu ltu r e viewed a s a ser ies of va lu a ble system
r esou r ces. Aga in it im plies th a t th e in ter n a l
con figu r a tion of th e or ga n iza tion ca n pr ovide
va lu a ble a dva n ta ges in th e m a r k etpla ce.
Un iver sities h ave a lw ays h a d a colle gia te
or ga n iza tion a l m odel on wh ich to ba se th e
gr ow th of va lu a ble socia l-fa ctor n etwor k s.
Bu t Gu n n (1995) w a r n s a ga in st th e in sidiou s
im position of pa tr on a ge over pr odu ctivity a s
th e cr iter ion of su ccess in a colle gia te or ga n iza tion .
F r om a str a te gic per spective, n ote h a s to be
ta k en of h ow to m ea su r e th ese va lu a ble
r esou r ces wh en iden tifyin g a ppr opr ia te cor e
com peten cies. An exa m ple of cor e com peten cy m igh t be th e a bility of th e a pplied
scien ce depa r tm en t to r a ise a postgr a du a te
pr ogr a m m e in a n im a l welfa r e m a n a gem en t
a n d secu r e 100 su ita ble stu den ts in its fir st
yea r. Th e essen ce of th a t com peten ce wou ld
be th e a bility to wor k togeth er, to be in spir ed
a n d to h elp ea ch oth er. Th e va lu e is a tta ch ed
to th e fit between th e r esou r ces, str a te gy a n d
th e en vir on m en t.
Cor e com peten cies sh ou ld be in tr in sica lly
flexible a n d a ble to su ppor t m u ltiple ser vices.
Com peten cy sh ou ld a lso r epr esen t a u n iqu e
ca pa bility, n ot ea sily im ita ted. Aga in or ga n iza tion a l cu ltu r e cou ld be on e su ch a sset. In
pr a ctica l ter m s, decision m a k er s n eed to h ave
tools wh ich r equ ir e th em to be m u ch m or e
specific a bou t th eir m a in a ctivities a n d th e
com pa r a tive a dva n ta ge th ey br in g to th e
in stitu tion . Activity-ba sed ben ch m a r k in g
(pr oof th a t th e a ctivity does a dd va lu e) a n d
em ployee a n d a sset distr ibu tion ca n be
a ccom m oda ted in a n a ppr opr ia bility in dex.
Th is tool cou ld be developed in con ju n ction
w ith th e n etwor k m a ppin g m en tion ed a bove.
Th is wou ld a id th e developm en ta l str u ctu r e
of th e or ga n iza tion a s it lin k s to its cu r r en t
wor k dem a n ds (O’N eill, 1994). In dividu a l a n d
tea m developm en t cou ld be a ccom m oda ted
w ith in th e gr ea ter diffu sion of con tr ol to th e
oper a tin g per iph er y of th e u n iver sity a s
obser ved by Ha n dy (1989) in th e com m er cia l
m a n a gem en t en vir on m en t a n d bein g pu r su ed
a s a m a cr o-econ om ic policy by cen tr a l
gover n m en t (Koga n , 1988).
Atten tion ca n be given to r edefin in g th e
cor e com peten cies. Th is r edefin ition is th e
oth er side of th e coin . Wh a t a r e clien t per ception s of th e ser vice th ey r eceive? Wh o a r e th e
u n iver sity’s m a in clien ts? Th e HE F CE pr ovides 50 per cen t of th e in com e to th e UK
h igh er edu ca tion sector ; a ddin g th e r esea r ch
gr a n ts gives a n oth er 12 per cen t a n d gover n m en t fu n ds th r ou gh th e loca l edu ca tion
a u th or ities (LE As) a fu r th er 12 per cen t
(HE F C, 1996b). Sh ou ld th ey th er efor e con cen tr a te on th eir r ole a s a gen ts in a pr in cipa l/
a gen t fr a m ewor k ?, i.e. sh ou ld u n iver sities a ct
a s a gen ts for th e gover n m en t a n d pr ovide th e
ser vice th e gover n m en t r equ ir es, i.e. tr a in in g
for em ploym en t a n d a pplied r esea r ch to
gen er a te n ew in du str y?
An oth er view is th a t a s in depen den t in stitu tion s, u n iver sities sh ou ld lea d a ca dem y
a n d edu ca tion policy in itia tives. Th ese ba sic
issu es em ph a size th e dir ection in wh ich ea ch
in stitu tion w ill tr avel in to th e fu tu r e. If gover n m en t-fu n ded stu den ts br in g in less
in com e th a n over sea s stu den ts, sh ou ld th e
la tter be offer ed a better ser vice? Ser vice
differ en tia tion in h igh er edu ca tion is on e of
th e issu es wh ich u n der pin th e th ir d u n iver sa l
or ga n iza tion a l pr ocess objective – equ ity.
Mor e specifica lly, equ ity is a pr in cipa l for a ll
pu blic-sector in stitu tion s wh ich h a s been
u n der m in ed by th e com petitive im per a tive.
Informing the strategy process in
higher education
Th e effects th a t a r e-th in k of pu r pose ca n
h ave on th e str a te gic in ten t of a u n iver sity
sh ou ld cr ea te ch a n gin g pa tter n s in its
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
str u ctu r e, system s a n d pr ocesses. Th e for m er
a n d th e la tter a r e dir ectly con tr olled by
execu tive dir ectives. Th e or ga n iza tion a l
system , h owever, is th e lin ch pin a n d if th e
th r ee a r e n ot con gr u en t th en str a te gies
ca n n ot wor k a n d objectives a r e n ot a ch ieved.
If a ppr opr ia te cor e com peten cies a r e to be
iden tified, th en r esou r ces, in th e fir st pla ce,
n eed to be a lloca ted to th e ta sk . In ter n a l
a u dits a r e on e w ay of a ch ievin g a deta iled
descr iption of wh a t th e in stitu tion is doin g.
Th is ca n be en h a n ced by u sin g tools of a n a lysis su ch a s th e a ppr opr ia bility in dex a n d th e
system s-m a ppin g tech n iqu es a s in dica ted.
Th ese com posite a n a lyses ca n u n der pin a
str u ctu r a l fr a m ewor k for th e m ission sta ted,
ba sed on th e r ecogn ized a ppr opr ia te cor e
com peten cies. Th is does n ot n ecessa r ily su ppor t on e sin gle h ier a r ch ica l str u ctu r e. Th er e
is a lso th e possibility th a t ea ch em er gen t
se gm en t of a ctivity w ill r equ ir e its ow n
a ppr opr ia te str u ctu r e. A low -cost con ven tion a l a r ea of a ctivity m ay r equ ir e a m ech a n istic h ier a r ch y. Sim ila r ly a differ en tia ted
h igh -in com e section m ay r equ ir e m or e in dividu a l a u ton om y. Th is br in gs th e in stitu tion
in to th e r ea lm s of th e m u ltiver sity (Livin gston e, 1974) a s well a s th e pr ofession a l ser vice
fir m . Bu sin ess pa r a llels a r e r ecogn ized in
m u lti-pu r pose globa l division a lized cor por a tion s or in globa l bu sin ess system s oper a tin g
th r ou gh n etwor k s r a th er th a n h ier a r ch ies.
Th e r esou r ce-ba sed view (RBV) of bu sin ess
clea r ly iden tifi es th e pivota l position of
com peten cies in bu ildin g com petitive
a dva n ta ge. Mor e pa r ticu la r ly, com plex,
h idden a n d in ta n gible a sset flow s wh ich
ca n n ot be ea sily r eplica ted pr ovide a n or ga n iza tion w ith th e poten tia l for su ccess. Th is is
th e m ost n oticea ble wh er e th e a sset fl ow s a r e
a ppr opr ia te to th e m a r k ets th a t th ey oper a te
in . In h igh er edu ca tion , on e of th e m ost va lu a ble a sset flow s is system ic n etwor k s of
socia lly cr ea ted tea m s of pr ofession a ls. Th ese
a ssets a r e m a de ava ila ble m or e r ea dily w ith in
a colle gia te fr a m ewor k wh ich is ba sed on
pr ofession a l con sen su s. It is im por ta n t to
iden tify wh a t fa ctor s cr ea te a n d dr ive a n
effective colle gia te system oper a tin g w ith in a
com petitive envir on m en t.
T h e im p lica t ion for t h e p r ocesses w h ich
a r e est a blish ed t o d issem in a t e t h e r esou r ces
for t h e ob ject ives in t en d ed is a lso a com p lex
issu e. Alloca t in g r esou r ces t o p r ior it ized
a ct iv it ies in t h e p r esen t a n d t h e fu t u r e is
im p or t a n t . Wh a t p r oced u r es a r e t o b e in st it u t ed for t h e a lloca t ion of r esou r ces is u su a lly on ly d ir ect ed by t h e execu t ive t o t h e
d e p a r t m en t a l level. Mor e n ot ice cou ld b e
t a k en of t h e p ossib ilit y of r esou r cin g n et wor k s t h r ou gh a m or e in for m a l st r u ct u r e.
In for m a lit y d oes n ot n ecessa r ily im p ly
u n a ccou n ta bility. Rigor ou s pr ocedu r es for
a ccou n tin g for expen ditu r e a r e a lw ays n ecessa r y in a pu blic-sector in stitu tion . However,
th e a ccou n tin g sh ou ld give som e m ea su r e of
u se of oth er r esou r ces besides fi n a n ce a n d
cou ld th er efor e h igh ligh t over - or u n der ca pa city of th ese r esou r ces.
Conclusion
Th is a r ticle h a s h igh ligh ted th e pr eoccu pa tion of m oder n str a te gic th in k in g w ith
r esou r ces a n d com peten ces. It is a n a ppr oa ch
wh ich ca n a id th e better a n a lysis of th e cor por a tion ’s a bility to com pete su ccessfu lly. In stitu tion s of h igh er edu ca tion a r e expected to
in cr ea se th e com petitive n a tu r e of th eir a ctivities w ith in th e en vir on m en ta l fr a m ewor k
wh ich dem a n ds con tin u ou s efficien cy ga in s.
E fficien cy a lon e m ay su ggest th a t su ch in stitu tion s look m or e closely a t cost-effective
u n iver sa l m odels of edu ca tion .
On th e con tr a r y, it m ay be th a t a u n iver sity
ca n a ch ieve su ccess by differ en tia tin g its
ser vices on th e ba sis of iden tified cor e com peten cies wh ich a r e a ppr opr ia te to th e differ en t
m a r k ets it ser ves. As a n a id to iden tifyin g
th ese cor e com peten cies two tech n iqu es a r e
su ggested. System ic n etwor k m a ppin g a n d
a ppr opr ia bility in dexin g of a r ea s of h igh er
edu ca tion a ctivity wou ld pr ovide a gr ea ter
de gr ee of a ccu r a cy r equ ir ed to in for m th e
str a te gic pla n n in g exer cise. Mor e r esea r ch is
r equ ir ed to r efin e a n d a da pt th ese tech n iqu es
to m a k e th em a ccessible a n d to im pr ove th eir
a pplica bility. A stu dy to in vestiga te a pplica tion a cr oss su bject a n d a ctivity cen tr es in
differ en t u n iver sities wou ld pr ovide eviden ce
of va lidity a n d r elia bility. Also r esea r ch is
r equ ir ed to iden tify th e pa th w ays by wh ich
th is in for m a tion ca n be u sed to in for m th e
a lloca tion pr ocess on a n on goin g ba sis.
Th ese tech n iqu es wou ld gen er a te a better
pictu r e of th e dir ection in wh ich th e or ga n iza tion sh ou ld h ea d a n d so m a k e th e m ission
m or e a ch ieva ble. It wou ld a lso im pr ove th e
in stitu tion ’s self-con sciou sn ess by cr ea tin g a
better pictu r e of its distin ctive ch a r a cter istics. F u r th er to th is it wou ld in for m th e
execu tive of th e m ost a ppr opr ia te str u ctu r e to
a dopt to foster su ccessfu l com petitive a dva n ta ge in its differ en tia ted system s, wh eth er it
be colle gia te, bu r ea u cr a tic or fu n ction a l.
P r ocedu r es for r esou r ce a lloca tion wou ld,
th er efor e, va r y a ccor din g to th e str u ctu r a l
a n d system ic iden tity a n d dir ection of ea ch
a r ea of a ctivity. Th e n eed to foster a n over a ll
coh esion in th e in stitu tion becom es th e n ew
execu tive im per a tive r a th er th a n th e r equ ir em en t to over see a n d pla n a ll su bor din a te
a ctivities.
[ 291 ]
Ge raldine Clarke
Re asse ssing re so urc e
allo c atio n strate gie s in highe r
e duc atio n: me tho ds fo r
analysis
Inte rnatio nal Jo urnal o f
Educ atio nal Manage me nt
1 1 / 6 [1 9 9 7 ] 2 8 6 –2 9 2
[ 292 ]
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