Management Consulting at Faculties of Design - Opportunities and Limitations

Lassner, Waltraud Gerda

Leseprobe

ID 9364

Lassner, Waltraud Gerda: Management Consulting at Faculties of Design - Opportunities

and Limitations - An Investigation into carrying out Reforms in German Higher Education

with the main Focus on Reform Attempts within the Study of Design. Case Study

Approach

Druck Diplomica GmbH, Hamburg, 2006

Zugl.: Fachhochschule Ludwigshafen, MA-Thesis / Master, 2004

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Printed in Germany

Dissertation

submitted in part fulfilment of the examination requirements for the award of an MBA

degree in International Management Consulting awarded by the University of Lincoln

and Fachhochschule Ludwigshafen.

Title

Management Consulting at Faculties of Design Opportunities and Limitations.

An Investigation into carrying out Reforms in German Higher Education with the main

Focus on Reform Attempts within the Study of Design Case Study Approach.

Graduate

Waltraud Gerda Lassner

Allgäuer Strasse 20

D-86391 Stadtbergen

waltraudlassner@web.de

German Supervisor

Professor Dr. Christel Niedereichholz

Fachhochschule Ludwigshafen

English Supervisor

Bill Leather

University of Lincoln

University of Lincoln, United Kingdom

May 2004

Fachhochschule Ludwigshafen, Germany

Dissertation

International Management Consulting

Acknowledgements

The sections of this dissertation are, partly, made-up by interviews. The writer owes a

debt of gratitude to the many people who provided their time and knowledge to help her

develop a personal understanding of the topic.

The writer is particularly grateful for the active involvement of all the interviewees:

Dr. Arnhold, Prof. Dr. Brandes, Prof. Bufler, Dipl. Designer Pahlke and Dr. Sperling.

Many thanks to Prof. Dr. Niedereichholz, Prof. Dr. Reineke, Mrs Metzler and Mrs

Bitsch from Fachhochschule Ludwigshafen, who took a personal interest in the

development in each of their students. Throughout both study and dissertation their

assistance was very helpful.

Likewise the writer appreciates the support of Prof. Bujatti and Prof. Gailhofer in

promoting her professional development.

Naturally, this dissertation could not have been drawn up without the support of my

family who have always been a source of encouragement.

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International Management Consulting

III

Abstract

This dissertation deals with reforms in the German system of higher education and

investigates, whether these processes could be facilitated by management consultants.

The main focus is placed on design faculties. The investigation of the subject is based

on a case study approach.

The starting point within this three-part work is an introduction into the system of

higher education in Germany by providing information on the political, legal and

financial background, the structure and types and present challenges. The second part

moves the investigation towards the design faculties. An analysis of design practice and

education reveals both the situation design faculties find themselves in and initial

reform attempts. How the policy of reform could be followed through successfully is

answered in part three by presenting relevant consulting activities and projects in the

field of higher education. Opportunities and limitations, which can be expected from an

involvement of management consultants round off this part.

German higher education seemed to be in a continuous cycle of crises and is still seen

as having need of reforms in the face of future challenges. As statistical data reveal

institutions had and still have to cope with a decrease in federal funding and with an

increase of students. In the face of future challenges such as internationalisation and

globalisation they need to position themselves effectively by keeping in mind their

strengths. The new General Act on Higher Education encourages this step by granting

higher education institutions more autonomy. In turn these are expected to evolve into

target-oriented entrepreneurial institutions. This requires a fundamental reform such as

described in two current concepts for future higher education institutions: The

Unchained University and Guide for the Knowledge Based Society.

In the second part design faculties are looked at in more detail and also aspects of

design practice and education are examined based on statistical data. The overall picture

shows that major changes occurred in the area of design. This is reflected in the high

unemployment rate. Also, expectations from the industry are way beyond the

capabilities of a design student, who has studied for four years. This has consequences

for design education. In this context higher education conferences are mentioned which

addressed the current need for reforms. A fundamental change in the way that design is

viewed becomes evident. Research in the area of design has become a central issue,

which calls for an independent development. Some activities are mentioned such as the

foundation of the German Association for Design-Theory and -Research DGTF, which

was established with the aim of encouraging more thought about new perspectives of

design. The current situation design faculties find themselves in is outlined by

discussing the challenges that reform poses for them, such as profile building and

drawing up strategic planning. Also, current concepts are presented, which conform to

the requirements of future higher education institutions mentioned in part one. They

refer to design education, continuing education as well as co-operation, and demonstrate

creative approaches to problem solving.

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International Management Consulting

In the following part the investigation reaches the central question of this dissertation:

whether management consultants can support reform processes at higher education

institutions and if so, what kind of assistance can design faculties expect. After having

provided a brief introduction into management consulting and into ways of carrying out

consulting tasks, consulting activities at higher education institutions are presented.

These provide the reader with a general idea on the spectrum of offered services, and

also reveal the use of standardised approaches when giving assistance to higher

education institutions. To elucidate opportunities of management consulting the Lean

Consulting Concept, a consulting product and method, and its adaptability to design

faculties are discussed. An evaluation of its suitability reveals that it makes sense to

adapt this product. Necessary steps are mentioned. Finally, opportunities and limitations

of an involvement of management consultants in reform projects at faculties are

discussed based on the writer's insight gained while compiling this dissertation.

The critical assessment of generated material leads to the following conclusions:

1. The establishment of organisations, which focus on providing consulting service

to higher education institutions reveals the necessity for professional support.

2. Management consultants play an important role in assisting reform activities at

higher education institutions by means of consulting approaches transferred

from the private sector.

3. Design faculties must develop entrepreneurial features and position themselves

effectively bearing the competition in mind.

4. The customised Lean Consulting Concept can be successfully applied to assist

the strategic planning process at design faculties.

5. Management consultants can contribute to a successful achievement of reform

requirements by providing their methodological competence and professional

experience as objective experts and facilitators. However, their expertise should

include extensive knowledge of higher education and design faculties

respectively.

6. The competition amongst providers of consulting services will be an indication

as to what extent higher education institutions and design faculties respectively

will rely on management consultants' expertise.

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Contents

Title ... I

Acknowledgements ... II

Abstract ... III

Contents ... V

Special Terms and Abbreviations ... VII

Introduction ... 1

Relationship to Previous Work ... 2

Methodology ... 5

Part One: Higher Education in Germany

1.1. Introduction ... 8

1.2. The German System of Higher Education ... 9

1.2.1. Background ... 9

1.2.2. Structure and Types ... 11

1.2.3. Present Challenges ... 13

1.3. Concepts for Future Higher Education Institutions ... 16

1.3.1. The Unchained University ... 16

1.3.2. Guide for the Knowledge Based Society ... 17

Part Two: The Study of Design in Germany

2.1. Introduction ... 18

2.2. Design in Practice ... 19

2.2.1. Professional Life ... 19

2.2.2. Success Factor Design ... 20

2.2.3. Design Policy and Promotion ... 20

2.2.4. Issues and Perspectives ... 22

2.3. Design in Higher Education ... 24

2.3.1. Historical Background ... 24

2.3.2. Design Faculty ... 25

2.3.3. Design Study ... 26

2.3.4. Issues and Perspectives ... 29

2.4. Present Concepts ... 31

2.4.1. Design Education - KISD ... 31

2.4.2. Design Continuing Education - d/s/z ... 32

2.4.3. Design Co-operation - Projects ... 33

Part Three: Management Consulting at Design Faculties

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International Management Consulting

Part Three: Management Consulting at Design Faculties

3.1. Introduction ... 35

3.2. Management Consulting ... 36

3.2.1. Background ... 36

3.2.2. Ways of carrying out Consulting Tasks ... 37

3.3. Consulting Activities at Higher Education Institutions ... 39

3.3.1. Institutions ... 39

3.3.2. Non-profit Organisations ... 39

3.3.3. Consulting Companies for Higher Education ... 40

3.3.4. Management Consulting Companies ... 41

3.4. Consulting Approach towards Design Faculties ... 43

3.4.1. Background ... 43

3.4.2. Lean Consulting Concept ... 44

3.4.2.1. General Description ... 44

3.4.2.2. Transferability to Design Faculties ... 47

3.4.2.3. Evaluation of Suitability ... 54

3.4.3. Opportunities and Limitations ... 55

Conclusions and Final Thoughts

4.1. Conclusions ... 61

4.2. Final Thoughts ... 65

Appendix 1: Interviews and Meetings ... 67

Appendix 2: Reference List Part One ... 68

Appendix 3: Reference List Part Two ... 69

Appendix 4: Reference List Part Three ... 71

Appendix 5: ICOGRADA Design Education Manifesto ... 73

Bibliography ... 74

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VII

Special Terms and Abbreviations

arf

Association of

Organisational Development Ltd

Gesellschaft für

Organisationsentwicklung mbH

BAföG

Federal Education Assistance Act

Bundesausbildungsförderungsgesetz

BDA

Federal Organisation

of the German Employers' Federation

Bundesvereinigung der deutschen

Arbeitgeberverbände

BDU

Federal Organisation of

German Management Consultants

Bundesverband deutscher

Unternehmensberater e.V.

CHE

Centre for Higher Education Development

Centrum für Hochschulentwicklung

Competo

Competo-

Strategic Higher Education Marketing Ltd

Competo-

Strategisches Hochschulmarketing GmbH

DGTF

German Association for

Design-Theory and -Research

Deutsche Gesellschaft für

Design-Theorie und -Forschung e.V.

d/s/z

design school zollverein

HEConsult

Higher Education Development

Consult Ltd,

Hochschulentwicklung

Consult GmbH,

HIS

Higher Education Information System Ltd

Hochschul-Informations-System GmbH

HoF

Institute for Higher Education Research

Institut für Hochschulforschung

HRG

General Act on Higher Education

Hochschulrahmengesetz

HRK

Rectors' Conference

Hochschulrektorenkonferenz

ICOGRADA

International Council

of Graphic Design Associations

Internationaler Rat

für Graphik-Design Gesellschaften

ICSID

International Council

of Societies of Industrial Design

Internationaler Rat

für Industrie-Design Gesellschaften

IFG

International Design Forum

Internationales Forum für Gestaltung

KISD

Köln International School of Design

VDI

Technological Centre

Technologie Zentrum

Science Council

Wissenschaftsrat

ZEvA

Assessment and Accrediting Centre

Hannover

Zentrale Evaluierungs- und

Akkreditierungsagentur Hannover

ZVS

Central Admissions Office

Zentralvergabestelle von Studienplätzen

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International Management Consulting

Introduction

In today's business world major events occur at a breathtaking pace, and there is little

time to respond. Organisations enterprises as well as public institutions are faced

with developments like globalisation, increased competition, which bring about

changes. Responding to change itself presents a significant challenge.

Higher education institutions are also affected by this situation. The development of the

German system of higher education is an important topic of discussion at universities

themselves, in politics, in the business world as well as in the media.

The idea that only deregulated university systems, which are autonomous and which

have a corresponding institutional profile, can deal with change is widely being

accepted. The various needs of mass universities cannot be met anymore by traditional

concepts of bureaucratic regulations and political influence. Therefore, according to

Müller-Böling (2000), Director of the Centre for Higher Education Development CHE,

only then when universities seriously start dealing with questions of objectives, profile

building and quality assurance can a big step forward be taken in the development of the

system of higher education.

Presently, in Germany reform efforts are carried out by the federal states in different

ways and by particularly dedicated universities. The new General Act on Higher

Education provides the higher education institutions with more autonomy and

responsibility. Müller-Böling (2003), is optimistic about the current reforms that are

taking place in higher education. In the article Die Reformuni he states that at least in

five areas significant changes occurred, which refer to organisational and financial

freedom, criteria for the allocation of funds, competition and transparency regarding

university performances, establishment of a professional higher education management

and issues regarding scientific excellence.

The question arises, whether reform policy could be managed more successfully with

the support of external management consultants. The major theme of this dissertation is

what kind of assistance higher education institutions, particularly design faculties, can

expect from management consultants in order to be able to face up to current

challenges.

Conferences, which recently took place, ICSID Design Congress in Hannover,

Conference at Ulmer Kuhberg and ADC-Conference on Education in Hamburg

confirmed the relevance of this dissertation's theme, since they all stressed the urgent

need for change.

The motivation for this dissertation results from a personal interest in design. The writer

is familiar with the problems, which may occur during studies and from personal

experience as a designer. Therefore, the reform, which is presently taking place, is

pursued with great interest.

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Relationship to Previous Work

The theoretical basis for this dissertation is formed by the sources listed in the

bibliography. In general, previous work has been reviewed as far as following points are

concerned: the reform of the system of higher education in Germany, developments in

the area of design and management consulting. Some of the sources, which seemed of

particular interest to the writer, have been listed and summarised.

In their work Higher Education Reform and Higher Education Management Hödl and

Zegelin (1999) analyse the present system and based on this predict the impact which

reform would have on the system. They also describe opportunities and limitations of

the strategic management model, when it is applied to universities. Grossmann (1997)

contributes a collection of articles in Reform of the Expert Organisations Hospital,

School, University. The issues, which institutions of higher education in Germany were

confronted with in the late 1990s and the subsequent reform activities are presented

from the different points of view of all parties concerned. Added to this, a general

description of benefits and problems at faculty level is provided.

The publications of the Centre for Higher Education Development CHE are based on its

activities and project experience. One of the early publications, the volume University in

Transition (Müller-Böling et al, 1998a), was the result of an international conference.

Possible reforms, the complex issues of university management and the trend towards

interdisciplinary orientation are discussed in depth. Müller-Böling's (2000) work The

Unchained University reflects his vision of a higher education reform. Examples of

CHE projects are included to highlight the importance of a goal-oriented strategic

concept within reform attempts. In this context a recently published reform concept

outlined by both the Rectors' Conference HRK and the Federal Organisation of the

German Employers' Federation BDA (2003) Guide for the Knowledge based Society

should be mentioned. Both concepts can be regarded as a demand for action towards

those who are politically responsible for bringing higher education institutions up to

date.

From the legal point of view the selection of literature is complemented by Reich's

(2002) summary and comment of the General Act on Higher Education. It provides

insight into the political and legal background relevant to the German higher education

system.

Below, publications and articles are mentioned which on the one hand describe

developments in the area of design and on the other hand activities, which indicate

tentative reform attempts and give an impression of the present situation. As will be

discussed later in full, we are dealing today with a fundamental change in the way that

design is viewed, which in turn has an impact on educational concepts.

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The Technological Centre VDI carried out a study Design and Innovation (Korte and

Mengel, 1997) to examine the way experts are dealing with design in reality. As far as a

new product is concerned, design is considered to be one of the most important non-

technical factors, which will determine how a product is received. For this reason design

is considered to play a major role in the German marketplace when it comes to

innovation and competition. In the publication Design and Design Centres (Zapp, 2000)

is shown how developments in the area of design are connected with historical, social,

economical and political aspects. Design centres are described as institutions, which

promote design through the interaction and co-operation of designers, enterprises,

government authorities and other organisations. The federal model with its huge number

of autonomous organisations is peculiar to Germany. This model includes advantages,

but also reflects a picture of fragmentation and it is debatable if design issues, such as

design education, are presented with sufficient energy.

The magazine design report includes a range of articles which refer to design education

and current challenges such as: design study, higher education reform, co-operation

projects and requirements of industry. One of the articles (Schuler, 2003) provide a

review of the last years since the foundation of the Kölner Modell that paved a new way

for design education. Köln International School of Design KISD, which resulted from

the Kölner Modell, is in the process of establishing its position internationally.

Furthermore, design school zollverein d/s/z is presented, which will start in 2006

(Godau, 2003). Absolutely new are this school's plans to target two areas: the creative

fields and the field of management. Seeing itself as an institution where research in

design and business design can take place, it is planning Master courses and PhD

programmes. Seminars and workshops are in the pipeline, which are to focus on both

the business and the design processes. Added to this, information is provided (Hubert,

2001) on how the course can be set for new ways of working with the industry without

being at its mercy. Since public funding has been massively slashed, co-operation

projects are an important source of outside funding.

The investigation of the nature of design has become a central issue for many educators.

In this context the foundation of the German Association for Design-Theory and -

Research DGTF in November 2002 should be noted. It was established with the aim of

encouraging more thought about design issues and developing new perspectives on

research. However, the absence of a social and scientific lobby, a scientific community,

is criticised (DGTF, 2003).

The developments mentioned above naturally pose a challenge for the institutions, first

of all to develop their individual profile and subsequently to establish themselves in a

competitive environment. Below publications are mentioned which formed the writer's

view on a successful involvement of management consultants.

In the publication Strategic Planning at Universities in Germany Streit (1997) provides

a scientific examination of opportunities and limitations with regard to strategic

planning at universities. Beside scientific models known from business management a

typical phase model used for strategic planning at universities is under discussion.

Checklists for planning processes and recommendations provide practical relevance.

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In the same context the collection of case studies and reports of experience in the

volume Strategy Development at Universities (Müller-Böling et al, 1998b) must be

mentioned. The reader is given an insight into how universities and management

consultants form strategies.

Lühr's (2001) work Successful Involvement of External Consultants reflects his

understanding regarding the relationship between consultant and client. He provides a

useful and practice-oriented guideline, which paves the way for a successful

collaboration and for sound results. Moreover, in this area the publications Management

Consulting Voulume 1 and Volume 2 of Niedereichholz should be mentioned, where

management consulting is comprehensively introduced. As Niedereichholz (2001) states

management consultants take upon themselves the responsibility for solving their

clients' long-term problems in different roles and by providing different ways of

carrying out consulting tasks. In this context consulting "products", which are defined

as an approach to solving comparable problems in different contexts, should be noted.

Several "products" are presented (Niedereichholz, 2003), which can be applied to solve

comparable issues of clients.

However, there are differences between higher education institutions and business

companies that have to be taken into account. Sporn (1992) highlights the fact that only

knowledge of duties, conflicts and distinctive features make the adequate transfer of

management concepts from business to universities possible. The publication

University Culture. Starting Point of Strategic Marketing Planning (Sporn, 1992)

provides helpful insight into the internal processes at universities.

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Methodology

The research approach, which would be best suited to study the chosen topic, was

thoroughly reflected. The following steps have been considered: selection of an

appropriate methodology, choice of a suitable research strategy and evaluation of

results.

Methodology is defined (White, 2000:20) as the approach used to investigate a subject,

and refers "...to the philosophical basis on which the research is founded." Therefore, it

is crucial to think about the research philosophy before data collection methods are

determined. Two controversial views on research philosophy can be identified

(Saunders, 2000): positivism and phenomenology. They have different advantages and

limitations in business and management.

When research reflects the principles of positivism the researcher will adopt the

philosophical stance of a natural scientist such as: objective measurement, deductive

verification or falsification of fundamental laws, generalisation based on sufficient

examples. Consequently, quantitative research is the corresponding research method.

Phenomenology is based on the assumption (ibid:86) that "...the social world of

business and management is far too complex to lend itself to theorising by definite

`laws' as is done in the physical sciences." The researcher is regarded as being a part of

the research process and observation is subjective. This approach is inductive in that it

looks at particular facts and then tries to relate them to the general picture. Qualitative

research is the corresponding research method. This approach is used (White, 2000:25)

in management and business "...to study the way organisations, groups and individuals

behave and interact."

Considering these two controversial views an inductive approach is regarded as suitable

in investigating the chosen topic. This decision is based on the following: The higher

education reform involves different parties with partly conflicting interests such as the

state and the higher education institutions; also the industry and the society amongst

others that have a stake in the development of the system of higher education.

Consequently the generated material will reflect the point of view of the respective

interest group. These particular facts will then be related to the general picture. In the

course of the analysis a multitude of material will be generated and critically assessed in

order to form the writer's views. The following questions will be answered:

What is the status quo of higher education institutions/design faculties?

Are there reform requirements?

Can management consultants meet these requirements?

What kind of assistance can be provided?

What are the opportunities and limitations?

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The choice of the research strategy that is defined (Saunders, 2000:92) as a general plan

of how the researcher will go about answering the research questions, is based on the

determined research approach. According to Saunders the researcher has to define clear

objectives, specify the intended sources from which data will be collected and consider

the constraints which inevitably will arise. Experiment, survey, case study, grounded

theory, ethnography and action research are regarded as the main strategies.

A case study approach is considered to be an appropriate research strategy to answer the

above mentioned research questions. Case studies are defined as a descriptive way of

collecting and interpreting information (White, 2000:29). In the first place the decision

for a case study approach is based on the fact that it is considered to be suitable to

investigate situations, which are complex and involve a number of different issues.

Added to this, the idea is supported of giving the work a `reality' and looking at the

situation as a whole. Moreover, a case study approach will always generate empirical

data and information, so that the researcher will not be solely dependent on existing

published work. Also, feasibility will be increased with regard to time and monetary

constraints since research can be carried out by the single researcher.

In the following paragraph relevant data collection techniques are mentioned regarding

primary and secondary sources. Great importance is attached to meetings and interviews

as a valuable source of primary data. They have been used to investigate the point of

view of different interest groups. Interviewees and attended meetings are listed in the

appendix. Due to a limited number of possible interviews, unstructured interviews have

been used to receive a rich source of material and to understand the what, the how and

the why. The real benefit of interviews is seen in the fact that the writer had face time

with the interviewee, so that the use of words in a particular way and any

misunderstandings could be cleared up immediately. Also, during the interview

questions could be re-worded or re-ordered if something unexpected came up.

Particularly, the interview was favoured because of the probable proprietary nature of

the requested information (Saunders, 2000:247). For this reason, establishing personal

contact was considered of utmost importance.

The results of the interviews are integrated in the sections of the dissertation.

Interviewees were assured that they would receive a copy of the dissertation after the

final approval. Secondary sources have been gathered from research in libraries and in

the internet. Sources vary from books, magazines, online documents and newspapers.

They helped to establish the writer's views and to prepare the interviews.

Finally, as White (2000) states in the course of the evaluation process results must be

related to the original aims of the dissertation. He recommends referring back to the

way they have been collected. Regardless of being quantitative or qualitative according

to White (ibid) data must be reduced in the process of interpretation. Since there is no

standard way of analysing results he encourages an individual approach. Within this

dissertation the process of interpretation was taken in two major steps. The results have

been gone through and divided into categories and ideas. Subsequently they could be

linked with already identified ideas in the literature or more general themes could be

formed.

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A special note was given to interviewees' quotes that seem to summarise an idea that

has been identified. The Harvard system was used as a referencing system. Within this

tree-part work information sources are listed for each part separately in the appendix.

Translations are provided on page VII in order to facilitate the understanding of special

terminology and abbreviations.

To round off this section, limitations of the chosen approach ought to be mentioned.

Case studies tend to be subjective. Since with all primary data from interviews there

may be a problem of bias, reliability and validity, the whole issue of generalisation

needed to be handled with caution. Secondary data already contains the personal view

of its author and may have been collected with a different intention. For this reason, it

was analysed critically.

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Part One: Higher Education in Germany

1.1. Introduction

It is believed that the European university has its roots in the schools of ancient Greece,

whose tradition lived on in the Roman Empire and in the Arabic world. But, as Hödl

and Zegelin (1999:360) assert, only the institutions, described as universitas

magistrorum scolarium that were founded approximately at the same time in Paris and

Bologna in the 12

century and soon in other places, showed intellectual dynamic and

the power to change society. Established with the aim of combining research with

teaching, they sought to legitimate their existence through church and state. With

universities being founded in the 14

century in Prague, Vienna, Heidelberg and

Cologne, German institutions also can look back at a very old academic tradition.

By way of introduction a brief summary will be given of the most striking aspects

influencing the present reform attempts in German higher education. Throughout the

centuries universities in general were subject to different influences. The importance of

the universities' autonomy for its future development has always been and still is an

issue under discussion. The reform experiences of the 18

and 19

century, influenced

by Francis Bacon, Leibnitz, and Humboldt, underline the argument that autonomy is not

only a guarantee for scientific freedom, but also the force that drives academic

performance in the competing disciplines and universities (Kamp, 1995:11-21).

At the beginning of the 19

century the organisational reorientation of the German

university was based on Humbold's redefinition of the university's function, namely

indivisibility of research and teaching (ibid). This principle helped German universities

to gain considerable scientific prestige. Through the integration of natural sciences

universities' spectrum of science changed fundamentally, and they developed into

worldwide-accepted institutions (ibid).

However, as outlined in the following, with the beginning of the 20

century major

changes occurred. As far as research is concerned non-university governmental research

institutions came into being. At present research is conducted mainly by three sectors in

Germany (Hödl and Zegelin, 1999): the university institutes, the non-university research

institutes and the research institutes of industry. The university constitutes the biggest

government-subsidised research organisation, with the most important institutions being

the Max-Planck-Society (founded 1948) and the Frauenhofer-Society (founded 1949).

Their existence fundamentally depends on the education of future scientists at

universities, and as Hödl and Zegelin (ibid:79) say, science for its part, provides "...the

decisive `material' for an accepted education and therefore for the existence of the

university."

Also, university education was integrated into the state education system as major parts

of society started to gain more access to education. It formed the tertiary level. As the

education system was based on egalitarian principles there were a number of issues

which universities (ibid:56) had to cope with simultaneously:

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an increase of the number of students, a decrease in funding, but also a rise in

governmental, industrial and social expectations. In accordance with the above-

mentioned requirements universities of applied sciences were established and gained

much political support at the end of the 1960s. The idea behind this type of higher

education institutions was to provide education with a strong practice-oriented training

component (bmbf, 2003).

Despite continuous reforms since the declared "education disaster" at the beginning of

the 1960s, German higher education is considered (Hödl and Zegelin, 1999:22) to find

itself in a continuous cycle of crises. Before looking at current requirements the German

higher education system will be described.

1.2. The German System of Higher Education

1.2.1. Background

Higher education institutions constitute a higher education system that is founded,

organised, regulated, and financed by the state. However, owing to a general tendency

towards deregulation, increased autonomy and competition the German system of

higher education is going to change (Hödl and Zegelin, 1999). Below, initial attempts

will be outlined.

The main legal and financial responsibility of education rests with the 16 states of the

Federal Republic of Germany. The Standing Conference of the State Ministers of

Education and the Arts is responsible for implementing policies that must be co-

ordinated nation-wide. With a General Act on Higher Education that consists of

common guiding principles of post secondary education, legislative powers are exerted

by the federal government as co-legislator (Künzel, 1998:77).

The General Act on Higher Education was passed in 1976, when the financial

requirements of the expanding academic sector began to grow beyond the means of the

federal states (ibid:78). By means of this act a reform process was initiated, which was

based on external political influence. After being modified in 1990 and 1998 it was

finally updated with the 6th amendment in 2002 and provides universities more

autonomy and responsibility. As Müller-Böling (2000:45) remarks, it stands out from

the former acts because of its "creative gaps". Organisation and leadership structures for

instance, which in former years have been legally stated, are now under the new General

Act the responsibility of the single higher education institutions. They are free to

organise themselves in accordance with their respective needs, their educational

mandate and also according to their size, tradition and culture (ibid). Also the federal

states are opening their state higher education act to new forms of legal bodies, where

the responsibility will continue to lie with the state; for example public law foundations

as university-maintaining bodies. Moreover, private higher education institutions are

being promoted in the hope of reducing the financial burden of the federal states

(Landfried, 2003). A revolutionary step is seen to be the salary legislation reform for

professors, which is currently being implemented (Müller-Böling, 2003).

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As already mentioned above the financial responsibility for higher education rests with

the state. The basic funding comes from the budget of the respective federal state

(Anderbrügge, 1998:248) and "...covers the basic needs in personnel, administration,

maintenance of buildings, investments and other expenditure for teaching and research."

The redevelopment and building of higher education institutions and their equipment is

financed by both the state and the federal government.

The allocation of funds for research and teaching occurs annually mainly by means of a

key, which differs from state to state and takes into account parameters involving needs

as well as results. Within the higher education institutions internal budgets are again

distributed according to a key (ibid:249). Increasingly the number of students is one of

the basic criteria for the allocation of funds (Müller-Böling, 2003). The management of

these funds takes place on a financial bases (Kameralistik). As will be described later,

there is a trend towards enhanced financial autonomy and lump-sum budgeting

(see:3.4.2.). Responsibilities for deciding on the expenditure of public grants are shifted

from the political-administrative sector to the higher education institutions, since it is

widely believed that decentralised decisions are characterised by better knowledge of

needs and by greater flexibility. Higher education institutions now have the opportunity

to negotiate goals and responsibilities and how these are going to be financed by means

of contractual agreements with the state. If higher education institutions receive a lump-

sum grant, they are expected to use their freedom by making efficient and effective

resource allocation decisions and to introduce business management calculations,

budgeting and controlling (Anderbrügge, 1998:249).

Other sources such as funding by outside bodies have never played a significant role in

the education sector. Compared to basic state funding they cover less than 15 percent of

expenditure (ibid). Owing to a decrease in expenses for education (see:1.2.3.) and the

debts of the German nation, that are not likely to be reduced in a short term perspective,

they will have to be increasingly considered in the future. The success-oriented

distribution of funds has already led to change in attitude, particularly with regard to

recruiting of finance from other sources. The debate on tuition fees should be mentioned

in this context. According to a survey carried out in 2000 by McKinsey&Company in

the context of the initiative "McKinsey bildet" (Kluge, 2003) the private share in

funding German higher education institutions amounted to only 0.1 percent of the gross

domestic product. Seeing that tuition fees will be extremely beneficial, since they

contribute to an overall financing of state-supported higher education institutions, to

additional tax revenues and public savings, their introduction is urgently recommended.

Take the case of state funding in 1999 of 18.6 billion , the benefit of charged tuition

fees of 3,000 annually amounts to the following in billions per year (ibid):

additional funds by means of tuition fees of 4.2 billion ,

that is an increase of 23 percent,

additional tax revenues of 1.9 billion ,

and public savings of 1.0 billion

by means of reduced time spent on a course owing to increased quality.

Ende der Leseprobe aus 88 Seiten - nach oben

Details

Titel

Management Consulting at Faculties of Design - Opportunities and Limitations

Untertitel

An Investigation into carrying out Reforms in German Higher Education with the main Focus on Reform Attempts within the Study of Design. A Case Study Approach

Autor

Waltraud Gerda Lassner (Autor:in)

Erscheinungsjahr

2004

Seiten

Katalognummer

V224459

ISBN (eBook)

9783832493646

ISBN (Buch)

9783838693644

Dateigröße

2125 KB

Sprache

Englisch

Schlagworte

hochschulreform strategie beratung organisation universität

Produktsicherheit

Diplom.de

Arbeit zitieren

Waltraud Gerda Lassner (Autor:in)

, 2004, Management Consulting at Faculties of Design - Opportunities and Limitations, Hamburg, Bedey Media GmbH, https://www.diplom.de/document/224459

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