1. Bogota, Oct 12, 2007

2. Institutional Advancement Institutional Advancement Higher Education Resources in the Post-Industrial Era Kai-ming Cheng The University of Hong Kong For National Forum on Higher Education Bogota, Oct 11-12, 2007

3. Society has changed …

4. Industrial Society: the Pyramid Higher Education

5. Industrial Institutions Operatives Craftsmen Technicians EngineersDegrees Diplomas Basic Education Vocational Training Higher Education

6. 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 estimated vis-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%

7. Project Groups/Task Forces Small Enterprises Free-lancers Post-industrial: Workplace Higher Education On-going processes of Re-engineering De-layering Down-sizing Out-sourcing M & A Closure

8. Organisations Industrial 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

9. Front-line workers Industrial 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 360 0 Unstable, uncertain and insecure Knowledge workers

10. Individual Lives Industrial 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

11. 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

12. 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, …

13. Trends in Asia in Higher Education..

14. Some Trends in Asia Unprecedented Expansions Building Elite Universities Expanded Student Learning Experiences

15. 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)

16. 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

17. 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

18. Lives in Higher Education Classes Study Student Activities/Halls Executives of Organisations Internship, Placement, Mentorship Design, Music, Drama, Sports Community Services/NGO Visits to Rural, Deprived Communities International Exchange

19. Some Trends in Asia Unprecedented Expansions Building Elite Universities Expanded Student Learning Experiences Who pays?

20. Resource Strategies for HE Public Money Public Institutions Community Resources Private Institutions

21. Public funding no longer adequate for the expanded system Private participation as a matter of resources strategy

22. Repositioning the Private Sector…

23. Enhancing private participation % Students Institutions Korea7887 Taiwan7266 Japan7786 Philippines8175 Indonesia9671 Malaysia9239 Pakistan6418 Significance of Private Sector

24. Enhancing private participation % Students Institutions Brazil7189 Chile7193 Venezuela4157 Nicaragua4852 Argentina2050 Significance of Private Sector

25. 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

26. Two Sectors? PublicPrivate

27. Or One Continuum … PublicPrivate

28. 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

29. 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

30. Philanthropy in Higher Education …

31. 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

32. Philanthropy: Global Trends II Government Matching Singapore: perpetual Hong Kong: 3B HKD (attracted 7.4B) UK: GBP200M for 3 years

33. Institutional Advancement…

34. Evolution of Terminology Fundraising Resource Development Institutional Advancement

35. 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

36. Institutional Advancement Donations 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

37. Higher Education Resources Public Appropriation, Subsidies, …Projects, Services,.. Donations, Endowment Investments

38. Harvard expenditures 60%Projects 65% levy 30%Tuitions 55% on scholarship 10%Donations 29.2B at 16.7% p.a.

39. Philanthropy: a different pie Government Appropriation Government Appropriation + Learners’ Fees + Projects Government Appropriation + Learners’ Fees + Projects + Private Donations

40. 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

41. Why fundraising? Public appropriation maintains us as just “ one of many ” Advancement makes a difference! Advancement = Community Support = Fundraising = Resources Development = Donations

42. Fundraising: How to do it?

43. Target Goal Strategies Needs/Products Donor Accounts Activities Capacity & Infrastructure Stewardship & Renewal

44. 10% 40% 1 10 100 1000+ No of Donors Amount of Donations

45. The Pyramid

46. 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

47. Fundraising capacities Donor Mapping Internal and external networking Cultivation Product design Solicitation Gift Launching Account Stewardship Account Renewal

49. Endowed Professorships Inauguration

50. Fundraising Lecture: St ock Investments 2.8M from 1,200

51. 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)

52. Stanley Ho Alumni Challenge

53. 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

54. Benchmarking …

55. Benchmarks: HKU (2005-06) Total sum Leadership gift Participation Total Endowment Good investment

56. How to plan …

57. Assessing the needs …..\..\..\Institutional Advancement\Campaign 07\Campaign calculation.ppt

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

59. How to start …

60. 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?

61. 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

62. After all, … Higher Education excels with, and only with, Mission and Passion!

63. Gracias! kmcheng@hku.hk