A quarter of UK higher education leaders fear that their institution will need a ¡°complete overhaul¡± in the face of the sector¡¯s financial crisis, according to a new survey.

Research by the National Centre for Entrepreneurship in Education (NCEE) shows mounting financial pressures are weighing heavily on university bosses.

Three-quarters of the group surveyed, of whom most were vice-chancellors, deputy vice-chancellors or pro vice-chancellors, said navigating financial concerns was ¡°very important¡±, while the remaining quarter said it was ¡°important¡±. In comparison, 66 per cent said driving internal change was ¡°very important¡± and 59 per cent of leaders said the same about international student recruitment.?

For 59 per cent of leaders, financial stability was viewed as the top institutional priority, compared with 37 per cent in the previous survey in 2022.?

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None of the 32 leaders said that maintaining business as usual or student and staff well-being was their top priority.

One in five said managing external changes was the top priority, which NCEE said reflects a ¡°somewhat more stable policy environment¡±. The same proportion said managing internal changes was most important to their institution.

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The survey was part of a new collection of 10 essays published by the Higher Education Policy Institute (Hepi), which stress the need for entrepreneurial leadership at times of ¡°constrained budgets, increasing financial uncertainty and the pressure to make difficult decisions¡±.

In the collection, Jane Robinson, pro vice-chancellor at Newcastle 51¹ú²úÊÓƵ, said ¡°no university is an island¡± but many leaders spend a disproportionate amount of time handling day-to-day internal management.

¡°While this is understandable in the current febrile environment, it is more important than ever to take the time to understand and respond to the external environment,¡± she wrote.?

Nine in?10 leaders (88 per cent) said their institution will need at least significant changes to adapt to financial pressures, up from 81 per cent in 2022. The proportion who said a complete overhaul is needed has increased fivefold over this time ¨C from 5 per cent to 25 per cent.

Over 90 per cent of leaders said their provider will need significant changes to adapt to AI and other emerging technologies.

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In her chapter, Liz Bacon, principal and vice-chancellor of Abertay 51¹ú²úÊÓƵ, said AI may generate savings in the long run, but the initial costs may pose a challenge.

¡°Nevertheless, integrating AI into the student and staff experience is no longer optional ¨C it is essential to staying relevant and cannot be ignored. While leaders may not have every detail mapped out, they must develop a vision for how AI will transform both on-campus and digital experiences.¡±

But despite the pressing need for an overhaul, just 69 per cent of respondents were confident their institution could change ¨C down from 85 per cent in the previous survey.

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Socrates Karidis, pro vice-chancellor and chief executive at Coventry 51¹ú²úÊÓƵ London, wrote: ¡°The first step is the recognition that we are slow, siloed and often inefficient organisations with a level of internal resistance to change, which sometimes becomes very difficult, if not impossible, to manage.¡±

And in a statement, Ceri Nursaw, chief executive of NCEE, said the collection of essays serves as a ¡°reflection on today¡¯s realities and a powerful call to action¡±.

¡°The UK higher education sector is at a pivotal juncture, where financial strain and technological disruption force a rethinking of institutional purpose.

¡°Entrepreneurial leadership must become the norm ¨C not the exception ¨C if universities are to act as economic powerhouses and public institutions that remain relevant and trusted.¡±

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patrick.jack@timeshighereducation.com