In advance of the Leadership Foundation’s announcement of the universities that will be taking part in the new Integrated Thinking and Report project, Kim Ansell, managing consultant, sets out why the time has never been so important for getting to grips with creating and communicating value.
Setting out long-term plans in the face of sector-wide turbulence is a challenge for every executive team and it is clear that given very recent government policy commitments, many of the assumptions underpinning institutional strategies have to be revisited, even if they were written as recently as a year ago.
These strategies are often being pursued in isolation without a real understanding of the wider risks and potential to destroy rather than create value. At a time when universities are facing ever more scrutiny and public accountability some have started to embrace a new way of thinking and reporting based on the Integrated Reporting Framework. This framework goes further than simply describing an organisation’s financial performance and among other things describes its contribution to society, the environment and its own community and stakeholders.
One of the challenges that universities face is summed up in a recent article on Media FHE by Professor Nick Talbot, deputy vice-chancellor for research and impact at Exeter University, on how higher education can defend itself from critics. He asserts that, “It is almost as if there were two higher education sectors – the ‘schooly’ bit and the ‘researchy’ bit, which exist as separate islands”.
Although written in the context of the Research Excellence Framework (REF), this remark makes the case perfectly for integrated thinking, and the Leadership Foundation believes that if universities can create a joined-up approach to thinking and reporting, aligned to clear business and value creation models, they will more successfully navigate the journey ahead and overcome barriers to sustainable strategic planning.
In particular, the need to be able to communicate to all stakeholders (from employees and governors to students and strategic partners) that the institution is creating value in the short, medium and long term is critical to leadership success.
With this in mind we are planning to unpack the concept of Integrated Reporting and facilitate the journey; to think about the full range of resources (or capitals), for example:
- Intellectual Capital
- Human Capital
- Social and Relationship Capital
- Financial Capital
- Environmental Capital
Understanding the trade-off between such resources when making strategic decisions is something which could be more successful and provide more sustainable outcomes if done in the context of an informed and disciplined approach to integrated thinking.
University leaders need information that assists them in making sense of a complex world and the direction of travel their institution is likely to take. There have been a plethora of articles recently, referring to changing business and financial models in universities, public value and value for money. Equally there continues to be events, conferences and articles ‘talking’ about institutional strategy, but the Leadership Foundation aims to take the talking one step further: to test and evaluate what works and to provide some real examples of how universities can mobilise integrated thinking and reporting to drive value creation and to implement a sustainable and successful strategy. With the support of an expert steering group, and building on previous work done by British Universities Finance Directors Group, we will consider what universities need to do
In this new work we aim to tackle sensitive issues with objectivity and equip institutions and their governing bodies with the skills, knowledge and insights to be able to evidence and report on holistic value creation and contribution, and provide necessary assurance on this key topic.
The time has never been better for universities to look to integrated thinking and integrated reporting to help them on their journey through these turbulent times in UK higher education.
For more on the Leadership Foundation’s Integrating Thinking and Reporting project visit www.lfhe.ac.uk/IntegratedThinking