In 2001 as part of our strategic vision, we set ourselves the target of being “top 10 by 2010”. So where are we against that target?
In national surveys our students rate their experience as superior to that in peer institutions. We can also look forward to the results of the RAE (attributable to our staff) with great confidence, and can reap the benefits of our ambitious capital programme.
The University’s development over the last few years is summed up by our new brand: confident, refined, displaying both academic excellence and an innovative and entrepreneurial approach to research. This has been made possible by the substantial growth we have enjoyed over the last decade, achieved through our performance in attracting major research funding and the recruitment of high quality students.
However we begin to face an even bigger challenge as the competition for students increases in an even more competitive environment. In the UK and globally there is also increased competition for and restrictions on, research funding.
Last year for the first time during our extended period of expansion, our income on ordinary activities increased by less than our expenditure; the 4% growth in income did not match an expenditure growth of 6%. Expenditure on salaries increased by 9%, as we saw the early effects of the 2006 – 2009 pay award, and we made new appointments in the run up to the RAE.
Our salary expenditure has been increasing at around this rate for the last five years, since the introduction of a new pay framework, and in 2006/07 salaries represented over 60% of our income. The remainder of the 2006 – 2009 pay award will add further to our costs.
The increases in costs have not been matched by an increase in income and we have to take action to ensure we can meet the new challenges that we face in the next decade. Therefore we have commissioned a review that will attempt to control the growth of the University, and prevent it becoming unsustainable.
We must take action to reduce our overall cost base, to meet the strategic needs of the University and ensure we maintain our position as a cutting edge, world leading institution. The review will identify and realise £15 million of cost savings (which includes £10 million required to bring Schools and Professional Services back into balance) and release resources that are currently spent on activities that do not generate income and academic benefit. These resources can then be reinvested into activities that will strengthen our academic mission and help cement our position as a “top ten” institution.
The areas for investment will include extended support for the co-ordination of successful bids for large scale interdisciplinary research grants. It will also include investment in high performance equipment that allows us to push the boundaries of our highly successful research programmes, as well as free up management time and effort to enable us to focus on enhancing and delivering the superior student experience here at Southampton.
I recognise that staff at the University work very hard and it is due to this hard work that we are such a successful institution. Moving forward we must ensure that our systems and structures allow this hard work to be effective in delivering benefit to the University.
Part of the review will identify efficiencies in administration by making full use of the additional resource that is now being realised through the implementation of the Finance and HR systems. The Management, Specialist, Administrative (MSA) Review will ultimately make the administrative tasks in the University uniform and efficient while delivering the appropriate level of support to the Schools from Professional Services. The next two years offer everyone at the University the opportunity to reap the rewards that the University of Southampton so richly deserves and that our investments are predicated upon.