Friday, July 10, 2015

Internationalization partners - shoppers beware!

With the momentum around internationalization in higher education, many colleges and universities are seeking to establish partners across national and regional borders. How to find and then secure the partnership will impact cost, fit, customization, sustainability, and outcomes.

Let me illustrate by using the analogy of shopping for three types of cars. The first is a Bentley Flying Spur Mansory. The salesperson will probably serve cocktails and caviar while you shop, will personalize your potential purchase to whatever degree you wish to pay, and the price is non-negotiable (how rude to talk price if you’re shopping for a Bentley!). The outcome will be an incredible vehicle sure to draw attention wherever you drive, an engineering/technology wonder that you may or may not be able to completely utilize (who drives at this Bentley’s top speed of 204.4 miles/hour?), and it will cost $600,000 and change. The second is an Audi A6. The showroom will be lively as a result of the recent popularity of the Audi brand, but you’ll have an attentive sales assistant who will approach you when you slip behind the driver’s seat. Three trim and engine packages are available with powertrain variations within the three; interior and exterior packages can be mixed and matched and numerous accessories can be added. The price may be a little negotiable, but primarily on the higher-end models and you’ll pay anywhere from $46,200 on up to $63,700 for maximum impact when you drive out on the street. The third is a Toyota Camry. As one of the most popular cars on the road, you’ll join many people shopping at the dealership and you’ll have to work to get the attention of a salesperson. You have several options from which to choose but no customization; you can haggle price a little. The outcome is that you’ll join the throngs of look-alikes, struggling to figure out which is yours in the parking lot, it will be predictable and easy to service and you may drive it until the wheels finally fall off at 200,000 miles and it will cost $22,970 and change. (Apologies to U.S.A. auto-makers who have many great options as well!)

What’s the point? Comprehensive internationalization pursued with the intent of substantive impact will likely require one or more partners to make it happen. Whether the institution is in the U.S.A., looking for ways to internationalize as a value-added piece of their portfolio while generating a little extra revenue, or in China, seeking ways to bring prestige to their institution and to create ways to hold Chinese students in China, the shopping excursion should be undertaken with caution. At present, far too few institutions have seriously looked at their ultimate vision in partnering for internationalization let alone tried to determine if they are in the market for a Bentley, Audi, or Toyota.

Not long ago I interacted with an international team visiting the U.S.A. on a shopping trip for a partnership. My sense was that they were in a hurry and really needed to have something to show for their efforts – now! They wanted a broker to help them secure a partnership and when I probed to ask what they were looking for, what they had to gain and to offer, and shared my experience in negotiating the complexity of partnership in Qatar, they at first seemed interested. Not far into the follow-up correspondence, I found that they had selected a partner institution and that a representative from the U.S.A. side was en route to visit. I cautioned about the importance of mutuality, cultural appreciation, and shared responsibility and funding; I never heard from them again. The bottom line is that this international partnership, initiated by a foreign entity seeking a U.S.A. partner, slid toward finding a “prestige” partner where I suspect bargaining would be very limited, customization might be available but certainly not compromising the “Bentley” brand the “selling” partner believed they had, and may ultimately result in an arrangement that is very costly, unsustainable, and underwhelming in its impact.

This is clearly an editorial piece and represents only my own opinions. It is, nevertheless, based on considerable direct experience and interaction. Regardless of which side of the partnering you may be on – seller or buyer – anyone involved in shopping for internationalization partnerships - BEWARE!

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