{"id":78024,"date":"2025-08-26T00:31:27","date_gmt":"2025-08-26T04:31:27","guid":{"rendered":"https:\/\/world.edu\/?p=78024"},"modified":"2025-08-26T00:31:27","modified_gmt":"2025-08-26T04:31:27","slug":"universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer","status":"publish","type":"post","link":"https:\/\/world.edu\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\/","title":{"rendered":"Universities have lost their way, but cost-cutting and consultants are not the answer"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-78025\" src=\"https:\/\/world.edu\/wp-content\/uploads\/2025\/08\/UniCrisis.jpg\" alt=\"\" width=\"680\" height=\"383\" srcset=\"https:\/\/world.edu\/wp-content\/uploads\/2025\/08\/UniCrisis.jpg 680w, https:\/\/world.edu\/wp-content\/uploads\/2025\/08\/UniCrisis-250x141.jpg 250w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><\/p>\n<p>Last week in Sydney, we saw a melodrama acted out that could stand in for the state of Australian universities more generally. Inside Sydney\u2019s swish Fullerton Hotel, a glittering cast of vice-chancellors, politicians, public servants, journalists, and consultants deliberated at a\u00a0<a href=\"https:\/\/live.afr.com\/higher-education\/\">higher education summit<\/a>, sponsored by the Australian Financial Review and consultancy Nous Group.<\/p>\n<p>Teaching-only casual staff, who do the\u00a0<a href=\"https:\/\/theconversation.com\/australian-unis-could-not-function-without-casual-staff-it-is-time-to-treat-them-as-real-employees-203053\">bulk of teaching in many universities<\/a>, were not represented in the\u00a0<a href=\"https:\/\/live.afr.com\/higher-education\/our-speakers\/2025\/\">official line up of speakers<\/a>. Instead, academics and students remained outside, protesting in the rain against\u00a0<a href=\"https:\/\/www.theguardian.com\/australia-news\/2025\/aug\/24\/australian-university-course-cuts-jobs#:%7E:text=The%20proposed%20cuts%20across%20the,of%20Technology%20Sydney%20(UTS).\">staff cuts<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.aph.gov.au\/Parliamentary_Business\/Committees\/Senate\/Education_and_Employment\/UniversityGovernance\">governance issues<\/a>\u00a0facing the sector.<\/p>\n<h4><strong>It started with the public good<\/strong><\/h4>\n<p>This is not where the modern Australian university began. The expansion of the system in the decades after the second world war was animated by a profound sense of the university\u2019s mission of\u00a0<a href=\"https:\/\/sydneyuniversitypress.com\/products\/9781743328705\">pursuing the public good<\/a>. New universities were established to advance nation-building but also to strengthen civil society and a common culture.<\/p>\n<p>Prime Minister Robert Menzies, who played a crucial role in this expansion,\u00a0<a href=\"https:\/\/www.menziesrc.org\/the-forgotten-people\">expressed this vision eloquently in 1942<\/a>. He saw universities not as \u201cmere technical schools\u201d but devoted to<\/p>\n<blockquote><p><em>the preservation of pure learning, bringing in its train not merely riches for the imagination but a comparative sense for the mind, and leading to what we need so badly \u2014 the recognition of values which are other than pecuniary.<\/em><\/p><\/blockquote>\n<p>We seem to have arrived at the antipodes of that vision.<\/p>\n<p>There is a steady stream of stories about\u00a0<a href=\"https:\/\/www.theguardian.com\/australia-news\/2025\/may\/13\/five-vice-chancellors-in-victoria-paid-more-than-1m-in-2024-prompting-claims-of-largesse\">exorbitant executive salaries<\/a>, and universities across the country are currently\u00a0<a href=\"https:\/\/www.afr.com\/policy\/health-and-education\/uts-suspends-new-enrolments-in-120-degrees-ahead-of-cuts-20250814-p5mmxd\">cutting courses<\/a>,\u00a0<a href=\"https:\/\/www.theaustralian.com.au\/nation\/universities-have-announced-sweeping-job-losses-in-a-costcutting-purge\/news-story\/4220a80e5a74b589c0d20acc4dd079e1\">jobs<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.theguardian.com\/australia-news\/2025\/aug\/24\/australian-university-course-cuts-jobs\">research<\/a>, mostly on the grounds these endeavours are not financially \u201cresponsible\u201d.<\/p>\n<h4><strong>Three ways out of the crisis<\/strong><\/h4>\n<p>If there is any way out of the present crisis, it it unlikely to come from current university leaders, who have shown\u00a0<a href=\"https:\/\/theconversation.com\/australias-university-system-is-battered-and-broken-a-new-book-surveys-the-wreckage-and-offers-some-solutions-259273\">little capacity to manage complex change<\/a>.<\/p>\n<p>Many vice-chancellors are on\u00a0<a href=\"https:\/\/australiainstitute.org.au\/post\/uni-vice-chancellors-keep-getting-richer-while-those-who-teach-and-research-are-left-behind\/\">million dollar-plus packages<\/a>\u00a0and have the job of advancing the corporate interests of their own institution in competition with others.<\/p>\n<p>Scholars and researchers apply a different lens. They tend to identify three ways of thinking about the current problems of the sector, and the way out of them.<\/p>\n<ul>\n<li>The first we call a\u00a0<strong>\u201cpolicy\u201d<\/strong>\u00a0approach. Proponents of this idea agree that universities could do better, even much better, and the problems of the sector are amenable to good policy. Contributions of this kind have come from former Melbourne University vice-chancellor\u00a0<a href=\"https:\/\/www.mup.com.au\/books\/the-australian-idea-of-a-university\/9780522871746\">Glyn Davis<\/a>\u00a0and foreign policy academic\u00a0<a href=\"https:\/\/www.blackincbooks.com.au\/books\/mind-nation\">Michael Wesley<\/a>. They agree universities could do better and the key is to get the policy settings right. The problems of the sector are amenable to better policy, they argue, clarifying their purpose and enabling greater diversity within the sector.<\/li>\n<li>The second response is the\u00a0<strong>\u201cpublic good\u201d<\/strong>\u00a0approach. Cultural studies academic Graeme Turner\u2019s recent book\u00a0<a href=\"https:\/\/publishing.monash.edu\/product\/broken\/\">Broken: Universities, Politics and the Public Good<\/a>\u00a0is an example. As the book\u2019s title indicates, Turner sees the system as broken, rather than merely flawed. Universities serve the public good and need to be publicly funded on that basis.<\/li>\n<li>A third approach is\u00a0<strong>\u201cradical-democratic\u201d<\/strong>. Advocates of this approach, such as sociologist\u00a0<a href=\"http:\/\/www.publishing.monash.edu\/books\/gu-9781925835038.html\">Raewyn Connell<\/a>\u00a0and historian\u00a0<a href=\"https:\/\/hannahforsyth.substack.com\/p\/there-can-be-no-university-reform\">Hannah Forsyth<\/a>, argue universities need to be reorganised as democratic institutions. This should encompass everyone in the university community and its whole workforce, not just the academics. They need to provide spaces and opportunities for dissenting forms of knowledge and action, seeking to transform society to make it more educated, equal and just. The erosion of democratic university governance, they argue, has led to widespread exploitation and diminished quality of education.<\/li>\n<\/ul>\n<p>We argue we need elements of all of these approaches. But current university leaders rarely manage to get beyond the first \u2013 the policy approach \u2013 and even then their cupboard looks pretty bare.<\/p>\n<h4><strong>Losing the \u2018social licence\u2019<\/strong><\/h4>\n<p>There is a\u00a0<a href=\"https:\/\/theconversation.com\/there-is-declining-trust-in-australian-unis-federal-government-policy-is-a-big-part-of-the-problem-248770\">growing anxiety<\/a>\u00a0about Australian universities\u2019 loss of \u201csocial licence\u201d \u2013 or the idea that a community trusts and supports an organisation to operate.<\/p>\n<p>There is a\u00a0<a href=\"https:\/\/megwebb.com.au\/wp-content\/uploads\/2025\/02\/LCSC-UTAS-Act-Final-Report-23-December-2024.pdf\">view<\/a>\u00a0universities have become businesses devoted to the budget bottom line rather than places of learning and research devoted to the public good.<\/p>\n<p>This is a problem of governance as much as of finance. University councils are\u00a0<a href=\"https:\/\/johnmenadue.com\/post\/2025\/08\/the-governance-crisis-in-australias-universities\/\">dominated by business people<\/a>, not academics.<\/p>\n<p>University executives routinely\u00a0<a href=\"https:\/\/www.smh.com.au\/education\/they-were-carnivorous-the-universities-spending-millions-on-consultants-like-pwc-20230620-p5dhzk.html\">delegate decision-making to consultants<\/a>. Decisions are\u00a0<a href=\"https:\/\/www.afr.com\/politics\/federal\/jason-clare-puts-unis-on-notice-over-governance-and-vc-pay-20250818-p5mnv9\">frequently hidden from public scrutiny<\/a>, let alone input.<\/p>\n<p>The trouble is thinking about universities through the lens of the balance sheet has left those in charge unable to advocate for the institutions they oversee, the staff who work there, and the students they educate in terms of their contribution to society in all of its aspects. This includes the social, cultural and civic.<\/p>\n<p>Once you have surrendered that territory, the loss of social licence quickly follows.<\/p>\n<h4><strong>Who are the experts?<\/strong><\/h4>\n<p>Professors are no longer seen as experts, but merely as \u201cexpensive\u201d and\u00a0<a href=\"https:\/\/www.theguardian.com\/australia-news\/2025\/jun\/13\/proposed-macquarie-university-restructure-will-hollow-out-humanities-academics-say-ntwnfb\">targets for redundancy<\/a>. Tutorials \u2013 the place where much university learning occurs \u2013 are cut or reduced because they\u2019re costly to run.<\/p>\n<p>Courses critical to maintaining our national capabilities \u2013 like\u00a0<a href=\"https:\/\/www.abc.net.au\/news\/2025-01-15\/university-of-wollongong-confirms-21-million-in-academic-job-cut\/104820778\">languages<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.afr.com\/policy\/health-and-education\/uts-suspends-new-enrolments-in-120-degrees-ahead-of-cuts-20250814-p5mmxd\">public health<\/a>\u00a0\u2013 are cut on the grounds they are \u201cunviable\u201d. Prestigious,\u00a0<a href=\"https:\/\/insidestory.org.au\/the-jewel-in-the-crown-of-the-anu\/\">long-running national projects<\/a>, such as the Australian National Dictionary and the Australian Dictionary of Biography, both at the Australian National University, are dismissed as financially \u201c<a href=\"https:\/\/d1zkbwgd2iyy9p.cloudfront.net\/files\/2025-07\/CASS%20Organisational%20Change%20Proposal%20-%2003%20July%202025.pdf\">unsustainable<\/a>\u201d.<\/p>\n<h4><strong>What are universities really for?<\/strong><\/h4>\n<p>Universities educate students, but they are also incubators of new knowledge and discovery. They have obligations to preserve knowledge for the nation. For example, by supporting areas of research that might not be economically \u201cefficient\u201d but which will be required for our future.<\/p>\n<p>So, yes, we need better policy that shifts the incentives for universities so they build critical national capabilities like linguistic and cross-cultural knowledge and skills, rather than cutting them. And we need to recognise that universities, in this way and many others, serve the public good.<\/p>\n<p>Even that, however, is not enough. Planning must look beyond just financial sustainability to consider sustainability and value in a broader sense. We live in a world of rapid\u00a0<a href=\"https:\/\/theconversation.com\/will-ai-pull-the-career-ladder-up-out-of-reach-or-just-change-what-it-looks-like-262866\">technological<\/a>,\u00a0<a href=\"https:\/\/theconversation.com\/zelensky-leaves-washington-with-trumps-security-guarantees-but-are-they-enough-263423\">geostrategic<\/a>\u00a0and\u00a0<a href=\"http:\/\/theconversation.com\/should-australia-lower-the-voting-age-to-16-like-the-uk-we-asked-5-experts-261469\">political<\/a>\u00a0transformation. Our universities, as they are now run, are not fit for purpose in this environment.<\/p>\n<p>We might be historians, but the point of all this isn\u2019t a history lesson. We\u2019re not advocating a return to a mythical golden age. Education is fundamentally about the future and our aspirations for it.<\/p>\n<p>A good start would be a serious debate about what sort of expertise, capabilities and qualities we need to be a successful nation in this world where no one owes us a living, the democratic system of government we cherish is\u00a0<a href=\"https:\/\/theconversation.com\/trump-has-long-speculated-about-using-force-against-his-own-people-now-he-has-the-pretext-to-do-so-258471\">being abandoned by our major ally<\/a>, and our\u00a0<a href=\"https:\/\/theconversation.com\/faith-based-politics-is-nothing-new-in-australia-so-whats-albanese-really-worried-about-234070\">social cohesion<\/a>\u00a0is in seeming decline.<\/p>\n<p>Universities cannot solve these problems alone, but they are undoubtedly part of the solution. They need to be at the table when the nation\u2019s problems and future are being discussed.<\/p>\n<p><em><strong>Author Bios:<\/strong> Michelle Arrow is Professor of History, President, Australian Historical Association at Macquarie University, Anna Clark is Professor in Public History at the University of Technology Sydney and Frank Bongiorno is President, Council for the Humanities, Arts and Social Sciences and Professor of History, at the Australian National University<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week in Sydney, we saw a melodrama acted out that could stand in for the state of Australian universities more generally. Inside Sydney\u2019s swish Fullerton Hotel, a glittering cast of vice-chancellors, politicians, public servants, journalists, and consultants deliberated at a\u00a0higher education summit, sponsored by the Australian Financial Review and consultancy Nous Group. Teaching-only casual [&hellip;]\n&hellip; <a href=\"https:\/\/world.edu\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\/\" class=\"more\">learn more&rarr;<\/a><\/p>","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[165287],"coauthors":[11733],"class_list":["post-78024","post","type-post","status-publish","format-standard","hentry","category-higher-education","tag-financial-responsibility"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Universities have lost their way, but cost-cutting and consultants are not the answer - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Universities have lost their way, but cost-cutting and consultants are not the answer - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"Last week in Sydney, we saw a melodrama acted out that could stand in for the state of Australian universities more generally. Inside Sydney\u2019s swish Fullerton Hotel, a glittering cast of vice-chancellors, politicians, public servants, journalists, and consultants deliberated at a\u00a0higher education summit, sponsored by the Australian Financial Review and consultancy Nous Group. Teaching-only casual [&hellip;]\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/world.edu\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2025-08-26T04:31:27+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:image\" content=\"https:\/\/world.edu\/wp-content\/uploads\/2025\/08\/UniCrisis.jpg\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:width\" content=\"680\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:height\" content=\"383\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"Kevin\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kevin\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/\"},\"author\":{\"name\":\"Kevin\",\"@id\":\"https:\\\/\\\/world.edu\\\/#\\\/schema\\\/person\\\/42c1c1d5ff7ffbdf0bd50ed94c6ae6ee\"},\"headline\":\"Universities have lost their way, but cost-cutting and consultants are not the answer\",\"datePublished\":\"2025-08-26T04:31:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/\"},\"wordCount\":1190,\"image\":{\"@id\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/world.edu\\\/wp-content\\\/uploads\\\/2025\\\/08\\\/UniCrisis.jpg\",\"keywords\":[\"financial responsibility\"],\"articleSection\":[\"Higher Education\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/\",\"url\":\"https:\\\/\\\/world.edu\\\/universities-have-lost-their-way-but-cost-cutting-and-consultants-are-not-the-answer\\\/\",\"name\":\"Universities have lost their way, but cost-cutting and consultants are not the answer - 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Inside Sydney\u2019s swish Fullerton Hotel, a glittering cast of vice-chancellors, politicians, public servants, journalists, and consultants deliberated at a\u00a0higher education summit, sponsored by the Australian Financial Review and consultancy Nous Group. 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