A new inquiry into university governance is raising concerns about the growing dependence on consulting services, with estimates showing up to $734 million spent in 2023. This large expenditure is intended to help universities navigate strategic, financial and operational issues, although it may also be creating conflicts of interest and reducing transparency.
Consultancy firms have traditionally advised universities on strategy, organisational reviews and performance improvement. However, recent findings indicate these firms now play a deeper role in shaping policy and direction. Many governing councils at Australian universities include members who are affiliated with some of the country's largest consulting companies, making it difficult to separate independent oversight from business interests.
At least one in three universities have consultants or former partners from firms such as PwC, EY, Deloitte, KPMG or McKinsey on their councils. In many instances, universities do not disclose the amount spent on consultancy fees or provide details about the outcomes achieved. Although some states require reporting, the relevant figures are often grouped into broad financial categories, making it difficult for stakeholders to assess actual spending.
This situation highlights a wider lack of transparency in the higher education sector. As universities increasingly rely on consultants, some experts argue that these firms often apply standardised solutions without properly addressing the unique challenges facing each institution. This raises important questions about whether the money spent delivers measurable value or simply sustains a closed network between large corporates and university leadership.
Sources
- Australian Financial Review
- The Australia Institute - Elective spending at Australian universities PDF
- Times Higher Education - Universities' spending on consultancy and travel 'costing jobs'
- Australian Parliament Senate Committee - Quality of governance at Australian higher education providers (Interim report)
