Strategic Portfolio Management in Education

Introduction
Education institutions in secondary vocational and higher education face a series of urgent and complex challenges. The decline in student enrollment in large parts of the Netherlands is putting pressure on the financial viability of relatively small programs. At the same time, dropout rates, students taking longer than expected to graduate, and recent budget cuts are creating additional financial strain. On top of that, the labor market is undergoing profound changes due to technological developments, climate issues, and an aging population. New professions are emerging, while the demand for workers in some sectors is actually declining. These circumstances call for a major overhaul and fundamental Renewal of the educational portfolio.

Research Question
Institutions have been working continuously and for quite some time to improve quality and implement Continuous Development for curricula and degree programs. The dominant perspective in this regard is the individual degree program. In light of the developments outlined, however, a new perspective is needed: that of the composition of the entire educational portfolio. There appears to be a need for a (more) strategic approach: systematically evaluating, redesigning, merging, phasing out, or launching programs. We call this sustainable strategic portfolio management.

In this study, Turner examined how:

1. how educational institutions handle portfolio management,
2. what challenges and opportunities there are, and,
3. What are the best practices in the field of educational portfolio management?
   

Research approach
For this research, we used various qualitative and quantitative analyses. Based on literature, interviews, case studies, and an analysis of approximately 15 assignments for educational institutions in secondary vocational education, higher professional education, and university education, we developed a generic model for the portfolio management process.
In this study, we also created a comprehensive information product (Profolio) based on a universal evaluation framework and by analyzing various public sources. This information product makes it possible to compare programs within a single institution and across multiple institutions.

Portfolio Management Analysis
Our case-based research shows that the educational portfolio of most institutions has developed organically. The range of programs has emerged from mergers, regional influences—such as a specific need for graduates—and/or opportunities identified by passionate individuals within an institution. Decision-making regarding portfolio development often takes place on an ad hoc basis, without a predefined decision-making framework, and rarely follows a structured and sustainable process.

This has led to educational offerings often being expanded to include new programs, while few existing programs are being reevaluated. As a result, program portfolios no longer strike the desired balance, and there is a lack of control over the necessary ongoing development.

There is a widespread sense of urgency to professionalize portfolio management. This is not driven solely by the financial pressures facing educational institutions; the (perceived) lack of control over the Portfolio’s development also plays a role.
By periodically and comprehensively assessing the performance of academic programs and the changing needs of students and the labor market, institutions can better anticipate the necessary developments in their Portfolio. Without this process, institutions often react too late—only when student enrollment declines or a program is consistently operating at a loss.

Discussions about the Portfolio have, up to now, (too) often been fragmented and based on gut feelings. Insights into performance and relevance are not comprehensively available, and making meaningful comparisons between programs is difficult. Therefore, it is crucial to structurally improve decision-makers’ access to information and to bring different perspectives together, so that a common starting point for dialogue on the future of the educational portfolio can be established. The emphasis here is on dialogue within the institution itself. In addition, the importance of aligning the educational offerings with other (regional) providers is becoming increasingly evident, in order to create a sustainable, future-proof, and effective educational offering in the region.

Portfolio Management Model
Based on the above analysis and best practices in the portfolio management process followed by institutions, we outline a universal model for strategic portfolio management.

The model (see Figure 1) has four key components:

1. Strategic portfolio management is a cyclical strategic process. This requires a well-defined structure, with fixed steps, timelines, and oversight.
2. A decision-making framework provides guidance when making decisions. The decision-making framework provides direction for the desired development in line with the institution’s strategy, ensures objectivity, and secures a comprehensive view from various perspectives.
3. Analysis and Insight are needed to use data to substantiate how individual degree programs relate to the evaluation framework. A pragmatic approach to the analysis provides focus and should be further enriched with contextual information.
4. A results-oriented dialogue provides space for both individual and collective interests within an institution.