Board of Governors meeting
June 5, 2012
The changing world…
The pace of change is accelerating, due to:
• the explosive growth and accessibility of information,
• the increasing number of highly skilled work force engaged in research and development, and
• the increasing number of countries capable of contributing to leading edge Research and Development.
Growth in Africa and Middle East
Source: IMF, World Bank, McKinsey GI
Implications…
There will be a growing need for different type of infrastructure:
• Education• Health Care and Long Term care• Financial System, • Commodities: Water, Agri-food• Clean Technologies
Percent change in R&D spending by region 2009 to 2010
Source: Bloomberg ; Booz & Company
Increases in worldwide R&D spending2009($550 b) to 2010
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$1.1 $1.3$2.2 $2.3
$4.5
$8.8
$10.4
$16.9
INDUSTRY
US
$Bill
ion
Source: McKinsey GI
‘Massification’ of higher education
Higher education: change is at doorstep
Contributing Factors:
• ‘Massification’ of PSE
• Major (rising) cost/tuition challenges
• Growing International Competition for Students, Faculty, Staff TALENT
• Strained Government Finances
Growing global water gap - to 40%
Source: Water 2030 Report
We are aging…
Source: McKinsey GI
• By 2050 the number of people 60+ will double
• Canada will move from being 41st oldest to 11th
Waterloo’s priorities
• Aging and health promotion
• Auto
• Climate change
• Energy
• Financial Risk Management
• Information Communications Technology and Digital Media
• Quantum
• Nano
• Water
National context
Over the past decade and a half:
• Experienced over 55% growth in student enrolment
• Hired an additional 6,000 faculty
• Government funding for university operating costs more than doubled from $5.4 B to $11.1 B
• Government funding for research nearly quadrupled from $1.2 B to $4.2 B
In the next 5 years Waterloo will face a world with:
• An increasingly competitive market for: (Good/excellent quality) students –
undergraduate?/graduate Faculty/Staff Research funding
• Increased government quality and accountability requirement
• Major demand and opportunities for new technologies (e.g. ICT)
• Becoming a more sustainable environment for both academic and business parts of the university
• More globalized PSE league in which performance is evaluated against international (as opposed to national or provincial or even U15) rankings and benchmarks
Waterloo’s ambition to be an innovative University of the 21st century
• Lead a few trends, not follow.
• Be recognized world leaders in specific strategic areas.
• Attract globally recognized talent.
• Create and retain world-class entrepreneurs.
Three generic types of competitive strategies
• Compete on cost (e.g., WalMart).
• Product differentiation to charge a premium (e.g., Apple, Mercedes-Benz).
• Limit to a particular niche and compete in a very small market (e.g., Bearskin Airlines, which only tries to serve a few destinations).
We must focus on:
• New Partnerships, increased collaboration
• Thinking beyond traditional disciplinary boundaries
• International scale
• Innovation everywhere: inside and outside classrooms
MCR alignment with foundational pillars
Foundational Pillars
Academic ExcellenceResearch Excellence and ImpactCo-operative EducationGraduate StudiesInternationalizationEntrepreneurship
Key Goals
Enhance Student Opportunities and Experience
Advance Quality of Education
Advance Research Excellence and Impact
Enabling Goals
Increase Visibility and Outreach
Improve uW Environment
Improve Resources and Funding
Advance Image and Philosophy
Ensure Clear and Effective Leadership
Developing new performance indicators
Indicators in the MCR Accountability Framework will:• Match strategic objectives from MCR• Operationalize goals and develop well
rounded set of measures• Reflect institutional-level, and faculty and unit-
level achievements• Reflect the Foundational Pillars
Preparing students for their careersCo-op final employment by student level
2008/09 2009/10 2010/11
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
97%
96% 96%95%
94%
93%
98%
97%
99%98%
97%
98%
Total Junior Intermediate Senior
Fiscal Year
% F
ina
l Em
plo
ym
en
t
Attracting high quality studentsEntering averages of 90%+ as compared to
Ontario universities - Fall 2011
Queen's
Waterloo
Western
McMaster
Toronto
Ottawa
Trent
York
Wilfrid Laurier
Lakehead
Laurentian
Carleton
Windsor
Brock
Guelph
Ryerson
UOIT
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
34.5%
25.9%
22.5%
19.6%
19.3%
11.6%
11.7%
10.7%
9.9%
9.0%
8.1%
8.0%
7.7%
7.6%
7.3%
6.6%
3.7%
10.0%
8.1%
4.8%
6.7%
5.3%
2.4%
1.5%
2.2%
1.4%
1.6%
1.8%
1.3%
1.4%
0.9%
1.1%
0.6%
0.7%
90-94% 95%+
% 1st-Year Undergraduates
On
tario
Un
ive
rsity
NSERC scholarships and fellowships 2012
Toro
nto
British
Columbia
Wate
rloo
McGill
Alberta
West
ern O
ntario
Ottawa
Calgary
McMast
erLav
al
Queen's
Dalhousie
Manito
ba
Montréal
Saska
tchew
an0
25
50
75
100
125
150
175
200
225
186
118
102
8371
49 47 47 46 46 42 39 35 33 27
U15 Institution
Count of Aw
ards
$115.7
$99.6 $103.0$109.7
$123.1 $127.7 $131.4
$144.1
$169.5
$190.4
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Am
ount Aw
arded ($Millions)
Award Year Ending
Federal Tri-Agency Federal (excluding Tri-Agency) Provincial Industry Other
Increasing partnershipsTotal sponsored research awards by source
Whether the big, complex institutions can maintain worldwide quality and capacity is a very serious question today…
“The bottom line is, that we live in a time in which the drivers of prosperity are primarily the
innovation that comes from generating new knowledge and people who are educated to
increasingly more sophisticated levels.”
Thank-you
Questions &
Comments?