Impact on the Higher Education Sector

The spread of COVID-19 has necessitated a range of extraordinary responses by states and education institutions, from travel restrictions to campus shutdowns.

Watch our webinar recording:
COVID-19 and response from the Higher Education Sector

The spread of COVID-19 has necessitated a range of extraordinary responses by states and education institutions, from travel restrictions to campus shutdowns. Prolonged crisis and recovery periods will drive greater localisation, online learning and financial austerity. Education institutions in “returning back to campus” must focus on both short and long term challenges.

The webinar brings together leaders from global universities and institutes of higher learning to share insights and discuss leading practices.

Watch the recording

Prolonged crisis and recovery periods will drive greater localisation, online learning and financial austerity. Education institutions in “returning back to school” must focus on both short and long term challenges. At PwC we are supporting clients to: prepare to protect student safety when classes resume, re-define engagement through the digital agenda, grow the revenue base and re-organise costs in the short and medium term, to rebound in the new normal.

Timeline of State and Higher Education Responses to COVID-19, 2020

Jan - Feb	China imposed lockdown in Wuhan; WHO declared outbreak to be Public Health Emergency of International Concern
Feb - Mar	Over 29 countries imposed travel restriction on high risk countries and quarantine measures for returning passengers Universities exploring options for online classes for international students amidst travel restrictions
Mar - Apr	Most major countries across the world introduced travel ban, closing all external borders upon WHO declaration of pandemic Universities preparing for campus shutdowns and cancellation of all in-person classes
Apr - May	Most SEA countries impose movement restriction by shutting schools and businesses; lockdown measures extended Several top universities announced hiring freeze and salary pay cuts; Universities develop Covid-19 task force

Prolonged crisis and recovery periods will drive greater localisation, online learning and financial austerity

Impact of COVID-19 Crisis on Higher Education

	Swift Recovery	Sustained Recession	Prolonged / Acute Recession
Enrolment	One-off impact on student enrolments in the upcoming 2021 academic year, particularly in the international student segment due to deferments and offer cancellations / rejections	Cancelled admission tests, examinations and graduations Recruitment events and further travel bans dampens international enrolments for 2021 cycle Competition for domestic students exacerbates as international reduces	Economic slowdown may create opportunities for graduate enrolment as the job-seeking population seeks price-competitive education as a means of gaining a competitive edge for when the economy returns
Teaching	Travel bans and social distancing measures prevent face-to-face learning activities Online learning to predominate over remainder of 2020 academic year; physical learning to resume in 2021 academic year	Institutions may switch to an all-online proposition for part of the 2021 academic year and will require more sophisticated online learning tools e.g. testing / examinations Decline in ancillary revenue sources, e.g. research funding, conferences	Extended period of online delivery – strong capabilities will be a major differentiator in the market along with marketing / branding Online learning approaches more integrated with physical learning – institutions will be ‘digital-first’ and incorporate essential face-to-face learning
Staffing and operations	Sharp immediate impact to bottom line, from refunds issued Incur additional expenses not previously budgeted, e.g. online learning software modules and special compensation for essential staff	Operating budgets strained – move to essential spend Shrinking state budget allocations to universities add further constraints Staff hiring freezes and layoffs to minimise costs (teaching and support)	Sustained streamlining of spend to only “essential” categories Alternative usage of university premises Emergence of new staffing models, e.g. flexible working arrangements for faculty members, streamlined support teams

The higher education sector must refine its digital agenda, protect and grow its revenue base and re-organise costs

Key Considerations for Higher Education Institutions	Key Opportunities
1. Re-define Digital Education Challenge in providing engaging online courses at scale and implementing holistic digital solutions e.g. admissions, lectures, examinations, graduation	Re-define digital learning pedagogy for both students and lecturers considering synchronous / asynchronous learning methods Deepen digital engagement / UX across student and faculty value chain
2. Protect and Expand Revenues Challenge in meeting expectations of current / incoming cohorts and seeking new growth opportunities	Strengthen existing propositions Identify additional and alternative revenue streams across segments Diversify customer base and international student concentration
3. Seek Immediate Cost Optimisation Challenge in identifying essential and non-essential cost ‘buckets’ and quantum of cost reductions required to maintain quality service / products	Assess cost base to focus on costs which create differentiation, reduce spend in certain areas to ensure minimum operations Eliminate non core spend
4. Re-Organise for Longer Term Growth Challenge in responding to longer term structural impacts from the pandemic e.g. prolonged social distancing measures	Re-define aspects of strategy and consider longer term transformation initiatives and associated new capabilities / partnerships

Guiding questions for higher education institutions across Asia Pacific to respond to both short and longer term challenges from COVID-19

How can I coordinate a campus-wide response and manage my stakeholders?

Task force and project management office setup
Communications and outreach management with key stakeholders, including students, academic and non-academic staff and health authorities / Government
Incident response and prevention policy management

How can I continue to deliver on my core propositions?

Digital learning upgrade: evaluation of online delivery methods, testing of new platforms, and implementation of new applications and approaches
Infrastructure readiness: assessment of technology readiness for online learning delivery
Workforce deployment models: right-sizing of workforce, staffing models

How can I best plan and prepare for the medium and long term amidst the uncertainty?

Strategic and Scenario planning based on varying economic outlooks
Growth strategies to diversify into new markets and revenue sources
Cost optimisation initiatives to protect bottom line and ensure resources are reallocated to strategic areas
Digital strategy formulation to develop a longer term ‘digital-first’ campus strategy

Over time, there are also broader transformation questions across strategy, the operating model and culture transformation and change

Components of University Strategy

Portfolio strategy
Research strategy
Campus footprint strategy

Recruitment strategy (including rankings optimisation)
Industry engagement strategy

Teaching and learning strategy
International strategy

Curriculum Design & Student Experience

Course consolidation
Curriculum digitisation agenda
Academic calendar
Student experience improvement
Student success and employment outcomes

Professional Models & Performance

Professional staff operating model
Professional staff career models
Process improvement and efficiency
Digital service delivery
IT strategy

Procurement, Footprint & Commercial Optimisation

Sourcing strategy and procurement improvement
Campus footprint utilisation improvement
Commercial activity profit and service improvement e.g., childcare

Academic Performance

Teaching and education focused roles
Individual academic performance evaluation and improvement

Governance & Operating Model

University governance
University operating model, including faculty design
Budget model reform

Culture Transformation & Change Management

Leadership development
Culture diagnostic and development

Contact us

Tristan Hockley

Government and Public Sector (G&PS) Leader and Salesforce Practice Leader, South East Asia Consulting, PwC Singapore

Tel: +65 9753 6736

Winston Nesfield

Insurance and Wealth Leader, South East Asia Consulting, PwC Singapore

Tel: +65 9159 1425