The Australian higher education sector has long felt the pressure of federal budget cuts. However, have we fully grasped the impact of these reductions? More importantly, have universities taken proactive steps to mitigate the risks? 

With planned funding cuts totaling $1.16 billion, smaller universities in disadvantaged communities will be hit the hardest. Larger institutions may have the resilience to absorb these cuts, but students may bear the brunt—facing increased tuition fees without a corresponding improvement in their learning experience or job-readiness. 

Additionally, the government’s proposed performance-based funding model means universities that fail to meet set benchmarks will receive fewer resources for innovation. This shift makes it more challenging to enhance employability outcomes for graduates. 

Commercial Engagements: A Sustainable Path Forward 

To navigate reduced government support, universities must focus on strengthening their commercial partnerships. 

Research by Jachimowicz and Umali highlights that successful commercial engagements create a win-win situation for all stakeholders: 

• Industry gains access to cutting-edge research. 
• Universities receive essential funding. 
• Society benefits from new products and technologies. 

Australia’s top universities have already embraced this model. The Group of Eight has partnered with the London-based IP Group PLC to secure a $200 million funding pool. As reported by The Guardian, these funds will support researchers in transforming their ideas into viable startups and spin-off companies. 

A Strategic Approach: CRM for Industry Partnerships 

There is no one-size-fits-all solution to attracting industry collaborations, but a good starting point is implementing a Customer Relationship Management (CRM) system to manage and scale engagement efforts. 

Investing in technology during budget constraints may seem counterintuitive. However, many universities miss funding opportunities due to disjointed processes and the loss of critical relationships when key personnel leave. An end-to-end CRM platform ensures a structured approach to managing industry partnerships and funding prospects. 

To maximize the impact of a CRM, universities should also consider

collaborating with Entrepreneurs in Residence (EIRs). EIRs specialize in identifying emerging technologies, partnership opportunities, and business models. However, to effectively leverage their expertise, they need a robust CRM system to track and manage industry interactions. 

Assessing Your University’s Commercial Engagement Success 

Over the years, I have developed a checklist to help universities evaluate and strengthen their commercial engagement strategies:

1. What are your defined strategies and processes for managing commercial engagements? (e.g., how do you track leads, opportunities, and key partnerships?) 
2. What are the primary funding sources you are targeting? 
3. Are the roles and responsibilities of your commercial engagement team clearly outlined? Do you have contingency plans and handover procedures in place? 
4. Does your university have a structured system for managing and storing partnership agreements and tracking key milestones? 
5. If an industry partner collaborates with multiple departments, is there a standardized process for managing agreements across teams? 

If you weren’t able to confidently answer all these questions and need more insights on fostering successful industry partnerships, feel free to reach out. 

For real-world examples of how we’ve helped universities establish successful commercial engagement platforms, explore our case studies here.