THE STRATEGIC MANAGEMENT OF THE GERMAN HIGHER EDUCATION INSTITUTIONS AS A TRANSPARENT, CYCLIC AND PARTICIPATIVE PROCESS

Abstract

This paper focuses on the comparative analysis of the process of the strategic management of the German higher education institutions on the base of the legislation and strategic documents of the universities and aimed to define the general framework of the strategic management of the higher education institutions as it concerns the structure and elements of this process, development of the strategic plan on different levels and definition of the main functions of the strategic management in German higher education institutions. The strategic management of the German higher education institutions is regarded as transparent, market-oriented cyclic and participative process. [PUBLICATION ABSTRACT]

Headnote

Abstract: This paper focuses on the comparative analysis of the process of the strategic management of the German higher education institutions on the base of the legislation and strategic documents of the universities and aimed to define the general framework of the strategic management of the higher education institutions as it concerns the structure and elements of this process, development of the strategic plan on different levels and definition of the main functions of the strategic management in German higher education institutions. The strategic management of the German higher education institutions is regarded as transparent, market-oriented cyclic and participative process.

Keywords. Strategic management, SWOT analysis, Balanced Scorecard, agreements on objectives.

Introduction

The scarcity of public resources and increase in the number of the students led to the reforming of higher education in European countries. In comparison with other European countries such as Great Britain or the Netherlands, Germany is a latecomer with respect to reforms of its university system (Schimank et al., 2009).

The theoretical background for the reform which was held in 1990s was derived from the New public management which provides the expansion of the decentralized room for maneuver. German higher education is regarded as a late starter in structural reforms in governance associated with New public management (Frankenberg, 2004; Orr et al., 2007). New public management in German higher education focuses on a model of governance that ensures autonomy at decentralized level but assures that central targets are achieved vis competitive business instruments (Hartwig, 2006).

With respect to regulation by state the universities and professors have been given more liberties with regard to financial resources. Regarding stakeholder guidance the influence of external stakeholders varies widely with regard to influence and position. Turning to managerial self-governance, during the 1990s the formal power of rectors and deans increased in all federal states but academic self-governance stays alive in a more informal way (de Boer et al., 2007).

The decrease of the public funding and the increase of the competition between higher education institutions and the policy of New public management made a strategic management crucial for the higher education institution. The concept of a market and the recognition that higher education can be subject to market forces (Jongbloed, 2004), however moderated by the state, has penetrated the vocabulary of university managers at all levels. "Competing for research funding, both from the state and from the industry, universities can no longer simply be administered: they have to be managed even strategically managed" (Schattock, 2000: 94).

The concept of strategic management was developed by I. Ansoff in the mid-1970s (Ansoff et al.). Strategies can be seen basically as a company's core goals and specific ways of achieving these objectives, which again should provide a guideline for allocating resources (Behm et al., 2011).

After proving its efficiency in business strategic management and planning have transferred to the higher education sector (Conway et al., 1994; McNay, 1997; Thys-Clement& Wiklin, 1998; Shattock, 2000; Ball, 2001; Pidcock, 2001; Rowley et al., 2001; Davies, 2004; Machado, 2004; Tabatoni et al., 2004; Lillis, 2006). Strategic management is regarded as an inseparable part of the higher education management (Bayenet et al., 2000).

"The benefits of the strategic management concerns its ability to capture the complexity of the organization as a whole and point it in a coherent direction; to provide a platform to articulate the distinctive mission of a HEI; to identify competitive advantage; and to increase awareness of and alignment to the external environment" (Lillis, 2006: 242). Universities develop strategies because of the external pressure, increased competition and cuts in budgets, a desire of quality and because of a need for a more coherent approach and institutional support for dialogue with external partners (Reichert, 2006).

A model of the strategic management process comprises the following phases: preparation/initiation - "mission statement", strategic planning, implementation.

The purpose of the research define the general framework of the strategic management of the higher education institutions which regards the structure and elements of this process, development of the strategic plan on different levels and definition of the main functions of the strategic management in German higher education institutions on the base of the comparative analysis of the legislative basis, strategic plans of the 42 German higher education institutions and other strategic documents of the universities..

Definition of the mission statement as the initial stage in the strategic management process of the German higher education institutions.

Mission statement should provide brief and clear information about the distinctive profile of the university and the core tasks ('mission' - 'what is our business?'). Mission statement of the higher education institution performs the function of orientation and steering, motivation, legitimization (Behm et al., 2011). Mission statements have become widely used and well-established devices for communicating respective organizational images to an audience both within and outside university. Mission statements of the German universities contribute to constructing corporate images (Kusmuetzky, 2012). Mission statements of the German universities provide the basis for the objectives of the university and its specific profile, promote the strategic management and marketing of the university and contribute to the quality assurance (Kosmuetzky, 2010).

The most popular commitments of the mission statements of the German higher education institutions are equal rights and opportunities for men and women, internationality, unity of research and teaching, quality assurance, interdisciplinarity (Hladchenko, 2013).

Mission statement can be developed in participative process when the planners of the universities organize alive discussions with members of the university or create on-line platforms where internal stakeholders of the higher education institution can contribute to the development of the mission statement (Alice Salomon University of Applied Sciences, Berlin; Regensburg University, University of Applied Sciences Essling, Ernst Moritz Arndt University in Greifswald).

German higher education institutions assert that the mission statement fulfills the following functions:

· creation of the profile of university (Mission statement University of Applied and Arts Hannover);

· a basis for the identification of the members of the university (Mission statement Potsdam University);

· a basis for the development of the strategic goals and measures with a high level of participation of the university members (Mission statement Alice Salomon University of applied Sciences, Berlin).

In the context of the abovementioned functions mission statements of German higher education institutions can be regarded as an element of the marketing strategy and branding, because it contributes to the creation of the image of the university for internal and external stakeholders and also used for communication with them, in order to deliver the main essence of its existence, its corporate image as an organization.

Strategic planning of the German higher education institutions

The process of the strategic planning the result of which is the development plan of the university consists of the three stages. The starting point is the strategic analysis or SWOT analysis, during which the changes in the environment of the organization, external requirements and internal potential of the university are compared (Zechlin, 2007).

The approach of SWOT-analysis was developed in 1960s by the representatives of the Harvard Business School (Behm, 2010). "SWOT- analysis is a model of strategy making that seeks to attain a match, or fit, between the internal capabilities and external possibilities" (Chermack et al., 2007: 385). SWOT-analysis is the first stage in the process of strategic management. "The SWOT analysis facilitates the integrative capture of internal and external factors as well as current and predicted future trends relevant for strategic development" (Behm et al., 2011:17). SWOT analysis is used not only in business but also by higher education institutions in the process of the strategic management (Chermack et al., 2007). SWOT analysis provides a device to structure the awkward mixture of quantitative and qualitative information, of familiar and unfamiliar facts, of known and half-known understandings that marks strategic marketing planning (Valkanos et al., 2006).

"This method is connected with the Design-School of the strategic management, which proposes a model that places primary emphasis on the appraisals of the external and internal situations, the former uncovering threats and opportunities in the environment, the latter revealing strengths and weaknesses of organization" (Mintzberg, 1998: 25).

"SWOT-analysis is the assessment of the Strengths and Weaknesses of the organization in light of the Opportunities and Treats in its environment that seeks to attain a match, or fit, between internal capabilities and external possibilities" (Mintzberg, 1998: 23).

The main functions of the SWOT-analysis:

· Provision of the informational basis for the strategic decisions;

· Structuring function for the first stage of the strategic process;

· Legitimation for participation (Behm 2010).

Besides SWOT analysis enhances the amount of the information accessible to the decision makers, offers the rationale for a set of decisions or a strategy and thirdly SWOT legitimizes the procedure in a strategic process. However, there are systematic limits for the function 'rationale for a decision'. "Decisions cannot be won by analyzing, there has to be an act of volition in each decision, or to put it another way: a decision is a decision and no calculation" (Berthold, 2009: 25).

Higher education institutions state in their strategic plans that SWOT matrix can be considered as an illustration of:

· the internal data-supported analyses and strategic papers (University Freiburg Dialog Werkstatt, 2011);

· external evaluations and rankings (University Freiburg Dialog Werkstatt, 2011);

· questionnaires, results of televoting, and discussion protocols from the meeting (University Freiburg Dialog Werkstatt, 2011).

SWOT analysis provides:

· a profound analysis of the environment, basis for the strategic directions (Fachhochschule Düsseldorf Hochschulentwicklungsplan 2012- 2016, 2012);

· basis for the vision, mission strategic goals, operative goals, measures (Fachhochschule Köln Forschungsstrategie 2015, 2007).

Planning in a participative environment is the best way to ensure that a wider spectrum of the campus community will accept the strategic plan (Rowley et al., 1997). Participation means that everyone affected by a process is involved in the decision making that leads to a final decision as well as with implementation. People almost always support changes they themselves have proposed (Rowley et al., 2002). SWOT analysis as a part of the strategic planning also should be conducted in a participative process.

SWOT analysis can be conducted in the form of discussion forums where participate members of the university, for example discussion of the SWOT analysis of the University Freiburg took 10 days. The groups of participants included the internal and external stakeholders of the higher education institution (University Freiburg Dialog Werkstatt, 2011).

Defining organizational areas of activities and external factors which can be crucial for their further development universities admit that they have strengths in education, research, human resources policy, governance and location. Most of them connect their weakness with funding - 'decline of the state funding'. Universities regard as weaknesses their low position in rankings (Hochschulentwicklungsplan der HTWK Leipzig 2012 bis 2020, 2011), problems with governance (professionalism of governance structures, esp. at the faculty level (University Freiburg Dialog Werkstatt, 2011); fragmented faculty structure, unsatisfactory administrative support process (Technische Universität Dresden. Die Synergetische Universität, 2012), human resources policy as it concerns recruitment of the personnel, promotion of the personnel (Entwicklungsplan der Justus-Liebig-Universität Gießen 2020, 2011).

German higher education institutions connect their opportunities with governance, education, human resources policy and research, infrastructure and cooperation with private sector. The same as their weaknesses most German universities connect their threats with funding, here also belong demographic changes and high competition among higher education institutions.

Higher education institutions conduct SWOT analysis not only on the level of the whole organization for the development of the strategic plan of the university but also on the level of faculties (Struktur- und Entwicklungsplan der Universität Hohenheim), the strengths and weaknesses are defined in education and research.

On the basis of the SWOT analysis the strategy and long-term goals are developed and actions are planned to successfully implement the strategy (Zechlin, 2007).

The strategic plan of the higher education institution is a strategic instrument which helps to define goals and achievements of the organization (Tenorth et al., 2007). Most of the strategic plans describe three hierarchical level goals which must be achieved. On the highest level there is an area of normative management which concerns the statements about long-term social benefits which university promotes (Vision, Mission) and values. In area of strategic management the middle level describes the middle and long-term strategies and goals the achievement of which provides the fulfillment of normative goals. The lowest level is operational management which includes the concrete measures (projects) which must be implemented during the five- or ten-year period which is stated in strategic plan to implement the strategy. A strategic plan must include performance and output goals. On the level of operational management must be created the product. There are different performance areas beside the hierarchy of the levels of the goals (Zechlin, 2007).

Legislative basis for the strategic planning of the German higher education institutions

According to the Laws for the Universities of the Federal States it is compulsory for all German university to draw up the development plans. The Federal Act of high education Framework Act for Higher Education (Hochschulrahmengesetz, 1999) and formulated on its basis Laws for the Universities of the Federal State is the legislative basis for the strategic planning of the German higher education institutions.

The Framework Act for Higher Education (Art.1 HRG) defines the following general goals of the higher education institution: the development of the science through research, learning, teaching and continuing education, preparation of the students to the professional activity, promotion of young researchers and development of the personnel, social responsibilities of the university, international cooperation, knowledge and technology transfer, informing the public about the performance of their duties. The Framework Act for Higher Education claims the equal rights between men and women. The Laws for the Universities of the Federal States also declare similar goals of the higher education institutions. Besides the most part of the Laws for the Universities of the Federal States contains paragraphs which concern the planning of the university and agreements on objectives between higher education institute and federal state.

The Laws for the Universities of the Federal States of such states as Baden-Württemberg(Art.7 LHG), Bavaria (Art.14 BayHSchG), Brandenburg (Art.3 BbgHG), Bremen (Art. 103 BremHG), Saarland (Art.6 UG), Saxony-Anhalt (Art.5 HSG LSA), Schleswig-Holstein (Art.12 HSG) define the fields of activities which must be present at the development plan. In other cases higher education institutions base their planning activity on the goals of the higher education institutions which are defined in The Laws for the Universities of the Federal States. In general fields of activity coincide with the objectives of the higher education institutions but there can be exceptions, for example the Laws of the Federal States Brandenburg (Art.3 BbgHG), Bremen (Art. 103 BremHG), Saarland (Art.6 UG), Schleswig-Holstein (Art.12 HSG) assert that the development plan must contain information about the financial funding, resources or external funding.

The Law of for the Universities of the Federal State Bavaria (Art.14 BayHschG) asserts that planning is a common task for federal state and university and must ensure the regionally coordinated range of the study programs and must take into account the interests of the federal state.

In federal state Schleswig-Holstein (Art.12 HSG) development plan of the university must be focused on learning and teaching, structural, personnel and financial development and equal rights of genders.

The strategic fields of activities are defined in the Laws for the Universities of the Federal States and they are clear and understandable that is why the task of the management of the university to develop the measures in these fields of activity which will be financed by the federal state.

The Laws for the Universities of the Federal States define the aim of the development plans of the universities. The laws of such federal states as Baden-Württemberg (Art.7 LHG), Bavaria(Art.14 BayHSchG), Branmdenburg (Art.3 BbgHG), Saxony(Art.10 SächsHSFG), Saxony- Anhalt (Art.5 HSG LSA), Schleswig-Holstein (Art.12 HSG), Mecklenburg- Vorpommern (Art.15 LHG M-V) claim that development plan must be a result of co-operation between ministry which is responsible for higher education.

For example, according to the Law for the Universities of the Federal State Bavaria planning of the development of the university is a shared responsibility of the state and university and it is used to ensure a nationally coordinated range of higher education institutions and study programs (Art.14 BayHSchG).

The Laws for the Universities of the Federal States also define the length of the period of planning for which university establishes a development plan. In most cases the length of the period of planning and the content of the development plan is based on the statements of the Laws for Universities of the Federal State. According to Law for Universities of the Federal States Saarland (Art.6 UG) and Thuringia (Art.11 ThürHG) a development plan must be formed every four years in agreement with Development plan for universities of the federal state (Hochschulentwicklungsplanung des Landes) and revised every two years. According to the Law for Universities of the Federal State Baden- Württemberg (Art.7 LHG), Mecklenburg-Vorpommern (Art.15 LHG M-V), Schleswig-Holstein (Art.12 HSG) and Brandenburg structure and development plan must be for five years.

The Laws for the Universities of the Federal States also contain information about agreement on objectives which are regarded as an instrument of the implementation of the strategic planning (Berthold, 2011) and the connections between them and development plan of the university. In Bavaria (Art.15 BayHSchG), Branderburg (Art.3 BbHG), Schleswig-Holstein (Art.11 HSG) agreement on objectives is the basis for the development plan of the university. Development plan is understood as a way to detail the agreement of objectives. In Bremen (Art.105 BremHG), Mecklenburg-Vorpommern (Art.15 LHG M-V), Lower Saxony (Art.1 NHG), Saarland (Art.7 UG), Saxony (Art.10 SächsHSFG), Thüringia (Art.12 ThürHG), Hessen (Art.7 HSchulG HE) the agreement on objective must be established on the basis of the development plan of the university. The agreement on objectives is formulated to achieve the goals which are defined in the development plan.

The differences in the statements of the Laws for the Universities of the Federal States mean that the development plans also will differ in size, period of planning, fields of activity. The Laws for the Universities of the Federal States don't contain statements about the size and the form or structure of the plans. There is no standard form for the strategic plan that is why the size of them ranges from 15 to 175 pages. The plans which are larger in size include detailed description of the goals and measures, development plans of the faculties and appendixes (agreements on objectives).

Strategic plans of the German higher education institutions

In research were analyzed the strategic plans of the 44 German higher education institutions. Strategic plans of the German higher education institutions determine the following purposes of this strategic document:

· the strategic concept translates the content of mission statement into strategic goals (Strategy concept Johanes Gütenberg University Mainz);

· preparation of the operational goals in agreements on objectives between faculties and Presidium of the university; negotiation of the agreements on objectives with the Ministry of Science and Culture (Leibniz Universität Hannover Entwicklungsplanung 2013, 2008, 4);

· defined strategic goals and guidelines allow actual detailed planning and implementation on the faculties and all members of the university must respect the guidelines of the development plan (Fachhochschule Köln Hochschulentwicklungsplan 2020);

· establishment of profile, improvement of the scientific environment, strengthening of the motivation of the students and lecturers (Hochschulentwicklungsplan der Heinrich Heine Universität Düsseldorf: 1);

· definition of the goals and guidelines and structured framework in order university to be able to meet the challenges of the future and develop its potential (Hochschulentwicklungsplanung der Fachhochshule Hannover 2009 bis 2012: 4);

· a strategic framework which describes the direction of the development of the university (Fachhochschule Dortmund Hochschulentwicklungsplan 2011-2020: 3).

All these statements show that the purpose of the strategic plan is development of the strategy which will contribute to the increase of the competitiveness of the higher education institution on the market.

Creation of the development plan is a time-consuming participative process which lasts from four months to one year and nine months. A little bit less than half of the plans describe the process of formation of the plan which involves discussions and consultations in which participate Presidium (Präsidium), University Council (Hochschulrat) and representatives from the faculties and departments, quality management team. These discussions concern such questions as education, research and resources and all other fields of activity presented in the development plan. Two of the universities while developing the plans were consulted by the same international organization which helps with sustainable performance enhancement and provides services for Corporate Performance Management and Performance Optimization - Horvath&Partners (Strategy concept Johanes Gütenberg University Mainz; Technishe Universität Kaiserslautern Hochschulentwicklungsplan, 2008).

In most cases universities state that the purpose of the development plan is to present the strategy concept of the university which provides basic orientation. Participation of Presidium, University Council and Senate in the process of development of the strategy of the university means that the senior managers of the university initiate the process of the formulation of the development plan and are responsible for its implementation. Open discussions of the strategy of the university on the sites of the universities suggest participation of the external and internal stakeholders of the university in the process of strategic planning. Participating in the discussions devoted to the formulation of the development plan members of the university consider that their opinion is important for the senior managers of the university and at the same time the planners can see this process from the point of view of those who implement the strategy. Open on-line discussions make the process of development of the strategy plan transparent and benefit to the communication between management bodies of the university and representatives of the staff and students. Most of the analyzed strategic plans of the German higher education institutions were discussed and modified by numerous committees and at faculty conferences.

Half of the analyzed strategic plans comprise the development plans of the faculties. The goals of the development plans of the faculties concern the same areas as the goals of the development plan of the university - research, education, promotion of young scientists, gender equality etc. The process of approval of the strategic plans of the faculties is also rather long and involves discussions in different committees and at the faculty conferences. For example, the strategic plans of the faculties of the University Hannover were discussed twice among the representatives of the faculties and Presidium. The faculties revised the plans during the discussions which were organized at the faculty. Strategic goals and development lines of the development plans of the faculties are relevant for the university strategy concept in general.

Strategic plans of the faculties can be formulated in different ways. Universities develop the plan of the university and plans of the faculties at the same time (Universität Hamburg structure and development Plan 2012, 2009). Faculties of the University Saarland (Universität des Saarlandes Universitätsentwicklungsplan 2011-13), University of Applied Sciences Köln (Fachhochschule Köln Hochschulentwicklungsplan 2020, 2011), University Kaasel (Universität Kassel Entwicklungsplan 2010-2014, 2010) and Hochschule Essling (Struktur- und Entwicklungsplan der Hochschule Esslingen 2013-2018, 2012) developed their plans on the basis of the strategic plan of the university.

Development plan is an inseparable part of the quality management system in context of the accreditation system and management of the university that is why the plans create transparency in the management of higher education.

Implementation and controlling of the strategy

"The most difficult part of strategic management is implementation; about 60 per cent of all the problems in the strategy process arise in the implementation stage" (Mouwen, 1997; 294).

Universities present the implementation of the strategy in a development plans describing allocation of financial recourses and financial planning, among the whole sample 23 development plans of the universities contain such information. It's a rather high percentage of the universities because not all Laws for the Universities of the Federal States demand the presence of such kind of information. The description of measures and planning of finance ensures transparency in reviewing achievements of the development plan. Besides implementation of the strategy can be presented on the level of the operational management - 26 of the plans contain the description of the projects and measures which concern the process of the implementation and 4 - indicators.

Implementation can be planned on the base of the Balanced Scorecard developed in the strategic plans of the German higher education institutions.

"Balanced Scorecard is a strategic management system that translates a higher education institution's mission and strategy into a comprehensive set of performance measures that provides a framework for a strategic measurement and management system" (Kaplan, Norton 1996: 10). "The Balanced Scorecard contributes to the implementation of the goals of the organization in a multidimensional system of indicators and parameters that measure the performance of the organization on the basis of perspectives" (Kaplan, Norton, 1996: 9). "The Balanced Scorecard differentiates between four central and important perspectives regarding strategic development:

· The financial perspective (Which material results should be achieved?);

· The customer perspective (What qualitative and quantitative performance is expected by the stakeholders?);

· The internal process perspective (Which work processes are important for the organization's success?);

· The learning and development perspective (What activities will be necessary to develop the organization and its personnel further in order to guarantee the success of the organization? What can be learned from failures for the future?)" (Nickel, 2011:23).

"The approach of the Balanced Scorecard supports the implementation of the strategy through the performance oriented management" (Kohlstock, 2009: 22).

Balanced Scorecard has multiply functions and can be regarded as a strategic instrument aimed at the implementation and operationalization, controlling and communication of the strategy. German higher education institutions regard that Balanced Scorecard:

· a basis for quality management (Hochschulentwicklungsplan Fachhochschule Münster, 2010: 24)

· represents, concretizes and operationalizes the strategic goals which can be achieved on the base of central measures (Hochschulentwicklungsplan Fachhochschule Münster, 2010: 24).

· translates the content of the mission statement into specific strategic goals and does so within an action framework with different perspectives; strives to achieve a balance in the target perspectives (Strategy Concept Johanes Gutenberg University Mainz, 2011: 6).

· ensures effective achievement of the strategic goals in area of learning and teaching (Academic Balanced Scorecard Fachhochschule Köln: 2)

· presentation of multidimensional process of planning, management and controlling in knowledge organization and contribution to the communication and implementation of the strategy (Entwicklungsplan der Montanuniversität Leoben 2012: 8)

Balanced Scorecard can be developed in a participative process (Hochschulentwicklungsplan Fachhochschule Münster, 2010).

The core elements of the Balanced Scorecard are perspectives. The traditional approach suggests 4 perspectives: customers, internal process, learning and development, finance. German higher education institutions created different perspectives for their Balanced Scorecards, but common for all of them including classical approach is the financial perspective which also can be presented as a sub-perspective of the resource perspective (Hochschulentwicklungsplan Fachhochschule Münster, 2010).

All the perspectives of the Balanced Scorecards developed by universities despite different headings are focused on the development of the personnel, education and research, improvement of the quality according to the requirements of the external and internal stakeholders of the higher education institution.

Implementation is also provided on the basis of internal and external agreements on objectives between senior managers of the university and faculties and between university and Ministry of Education.

First of all the agreement on objective is the basis for the formation of the budget of the university because contains information about the allocation of the funding. Agreements on objectives and performance are considered an instrument of strategic management which involves cooperation between university and authority of the federal state which is responsible for the higher education. The purpose of the agreements on objectives is to specify the quantities, dates and processes for achievement of the strategic goals of the university. They are also aimed to specify the legal and political guidelines of the mission statement and the goals of the development plan. The establishment of the budget is done on the basis of performance indicators. The Laws for the Universities of the Federal States contain the requirements to the agreements on objectives. For example the Law of the Federal State Bremen (Art. 103 BremHG) states that the agreement on objective is the basis for the allocation of financial resources on the basis of the performance oriented criteria. It is a way to ensure the quality in such fields of activity as study, continuing education, research, knowledge transfer, equal rights, internationalization, development of the region, development of the university structure, quality management. If the university doesn't fulfill the goals it can receive less finance (Art. 105 BremHG §105). The Law for the Universities of the Federal State Lower Saxony (Art.1 NHG) asserts that agreement on objective must contain the number of the study places, measures aimed at the fulfillment by the university the goals which are stated as the goals of the university in the Law, quality assurance of the education, profile education and internationalization, the amount of the fee.

According to the Plan-Do-Check-Act cycle the strategic management is a cycling process. The strategic management process begins from the analysis of the results of the previous strategy and current situation of the higher education institutions and finishes again with analysis of the implementation of the current stage of the strategy in order to develop the next one. Besides the agreements of objectives is also the base for the monitoring of the results of the strategy implementation.

University state that base their strategy on the analysis of the results of the previous strategy (Universitat des Saarland Universitätsentwicklungsplan 2011-13).

Conclusion

Strategic management of the German higher education institutions is a process of collaboration between the state in person of the Ministry of Education and higher education institution. Strategic management of the German higher education institutions is a complex process which involves development of the mission statement, creation of the strategic plan on the basis of the SWOT analysis and implementation of the developed strategy.

The results of the research prove that first of all process of the strategic management which includes development of such strategic documents as mission statement, strategic plan and agreements on objectives contributes to the transparency in administration of the higher education institution. Public availability of these documents provides information not only to external but also to external stakeholders about the strategic direction in which moves higher education institution and its success in achievement of the strategic goals.

Secondly, strategic management as a participative process contributes to the formation of the culture of the university as an organization, to the development of the communication inside this organization. Formation of the development plan is rather long process which in many cases is participative and involves cooperation between the representatives of the management and staff of the university. In most cases the process of the strategic management on its different stages - analysis, planning and implementation involves participation of internal and external stakeholders. The staff of the university who implements the development plan better understands the strategic goals of the university and can significantly contribute to the implementation of the strategy and achievement of the goals. The process of the strategic management can't be built as top-bottom process, because it must be based on communication between senior managers of the university and its stakeholders, planners of the higher education institution must receive feedback on the develop strategy not only from internal but also from external stakeholders. Participative process of the strategic management of higher education institution contributes to the strengthening of the motivation of the representatives of the university because they feel close connections with the university and responsibility for its development. Participation of the representatives of the faculties in discussions which concern the development plan shows the importance of their opinion to the management of the university and contributes to their better understanding of the strategy of the university. The senior managers consider the members of the universities as their partners because it is the staff who must implement the developed strategy. Participative process of the strategic management contributes to the development of the strategy on three different levels - university, faculty and individual lecturer. That is why strategic plan should contain measures and indicators which on the base of which not only planners of the university can control the achievement of the strategic goals but also the members of the university can develop their own strategy in order to implement the strategy of the faculty and university. The success of the strategy of the higher education institution depends on cooperative work between senior managers and members of the university based on the participative cyclic process of the strategic management of the higher education institution, because every following strategy must be build on the analysis of the results of the previous one.

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Hladchenko, M., (2013), Mission statement - a Component of the Strategic Management of University (on the example of German universities). New Educational Review, ?31, 229-240.

Hochschulrahmengesetz (1999) http://www.gesetze-im-internet.de/bundesrecht/hrg/gesamt.pdf

Jongbloed, B., (2004), Regulation and Competition in Higher education. In: Teixeira, P., Jongbloed, B., Dill, D., Amaral, A. (Eds.). Markets in Higher Education. Kluwer Academic Publishers.

Lillis, D. (2006), The systematic evaluation of a strategic management program in an Irish Institute of Technology. Tertiary Education and Management. Vol. 12, Issue 3, pp.241-256.

Kaplan, R., Norton D., (1996), Translating strategy into the Balanced Scorecard. Harvard Business School Press. Boston. Massachusetts.

Kohlstock, B., (2009), Die Balanced Scorecard im Bildungskontext. Management. 3,22-28.

Kosmuetzky, A., (2012), Between Mission and Market Position: Empirical findings on mission statements of German Higher Education Institutions. Tertiary Education and Management, Vol.18, ?1, March 2012, 57-77.

Kosmuetzky, A., (2010), Kosmtzky A., (2010), Von der organisierten Institution zur institutionalisierten Organisation? Eine Untersuchung der (Hochschul-) Leitbilder von Universitäten. Bielefeld Universitätsbibliothek Bielefeld, Hochschulschriften.

Leibniz Universität Hannover Entwicklungsplanung 2013 http://www.uni- hannover.de/imperia/md/content/webredaktion/universitaet/publikati onen/ziele/entwicklungsplanung.pdf

Machado, M., Farhangmehr, M., Taylor, J., (2004), The Status of strategic Planning in Portuguese Higher Education Institutions: Trapping or Substance? Higher Education Policy, 17, 383-404.

McNay, I., (1997), Strategic Planning and Management for Higher Education in Central and Eastern Europe, Budapest: TEMPUS.

Mintzberg, H., Ahlstrand, B., Lampel J., (1998), Strategy Safari. A guided tourthrough the wilds of strategic management.

Mission statement University of Applied and Arts Hannover http://www.ash-berlin.eu/en/ash-berlin-tradition-and- modernity/mission-statement/

Mission statement Potsdam University http://www.uni-potsdam.de/leitbild/leitbild-uni-potsdam.pdf

Mouven, K., (1997), Implementing Strategy in Higher Education. Tertiary Education and Management, Vol.3, ? 4, 293-297.

Nickel S., (2011), Strategic Management in Higher Education Institutions - Approaches, Processes and Tools. In Leadership and Governance in Higher Education - Handbook for Decision-makers and Administrators. D 2-1.

Orr. D, Jaeger M., Schwarzenberger A., (2007), Performance-based funding as an instrument of competition in German higher education. Journal of Higher education Policy and Management, 29 (1), 3-23.

Pidcock, S., (2001), Strategic Planning in a New university. Journal of Further and Higher Education, 25.

Reichert, S., (2006), Research strategy development and management at European universities. EUA.

Rowley, D., Lujan, H., & Dolence, M. (2001). Strategic change in Colleges and Universities: Planning to survive and Prosper. Jossey Bass, San Francisco.

Schimank U., Lange S., (2009), Germany:A Latecomer to New Public Management. University Governance. Higher Education Dynamics (eds.) Paradeise C., Reale E., Bleiklie I., Ferlie E. Vol.25, pp.52-75.

Shattock, M., (2000), Strategic Management in european Universities in an Age of Increasing Institutional Self Reliance. Tertiary Education and Management, Vol.6, issue 2, 93-104.

Tabatoni, P., Davies, J., & Barblan, A., (2004), Strategic Management and Universities' institutional development. European University Association.

Thys-Clement, F., & Wilkin, L., (1998), Strategic Management and Universities: Outcomes of a European survey. Higher Education Management, 10, 13-28.

Tenorth H.-E., Tippelt, R., (2007), BELITZ Lexicon Pädagogik, Weinheim/ Basel.

University Freiburg Dialog Werkstatt, (2011), http://www.dialogwerkstatt.uni-freiburg.de/projekte-en/swot-en

Valkanos, E., Anastasiou, A., Androutsou, D., (2006), The importance of SWOT Analysis for educational units that belong to the field of Vocational Education and Training. Decowe Conference: Ljubljana, Slovenia, 24-25 September 2009.

Zechlin L., (2007), Strategische Hochschulentwicklung. Die Hochschule, pp.117-118.

List of the strategic plans of the universities

Johannes Gutenber-Universität Mainz Strategy concept http://www.uni- mainz.de/universitaet/Dateien/JGU_strategy_concept.pdf

Universität Hamburg structure and development Plan 2012, 2009 http://www.uni- hamburg.de/presse/publikationen/step_2012_e.pdf

Hochschulentwicklungsplan Hochschule Landshut 2012-2020 https://www.haw- landshut.de/uploads/media/Hochschulentwicklungsplan_2012-10-09- Verffentlichung_Kurzfassung-v3_01.pdf

Leibniz Universität Hannover Entwicklungsplanung 2013 http://www.uni- hannover.de/imperia/md/content/webredaktion/universitaet/publikati onen/ziele/entwicklungsplanung.pdf\\

Universität des Saarlandes Universitätsentwicklungsplan 2011-13 http://www.uni-saarland.de/uploads/media/UdS_UEP_2011- 13.pdf

Hochschulentwicklungsplan der Hochschule Merseburg http://www.hs- merseburg.de/uploads/media/110518_HEP_FINAL_2010_01.pdf

Hochschulentwicklungsplan der Heinrich Heine Universität Düsseldorf http://www.uni- duesseldorf.de/home/fileadmin/redaktion/Oeffentliche_Medien/Presse /Pressemeldungen/Dokumente/HEP_HHU_2011.pdf

Universität Kassel Entwicklungsplan 2010-2014, 2010 http://www.uni- kassel.de/EQ/published/Entwicklungsplan_2010_bis_2014.pdf

Universität Duisburg-Essen Hochschulentwicklungsplan 2009-2014, 2009 http://www.uni- due.de/imperia/md/content/webredaktion/2009/hochschulentwicklun gsplan_2009-14.pdf

Struktur- und Entwicklungsplan der Hochschule Esslingen 2013-2018, 2012 http://www.hs- esslingen.de/fileadmin/medien/einrichtungen/Struktur_und_Entwicklungs plan/SEP_HE_06_Nov_12.pdf

Hochschulentwicklungsplan der Fachhochschule Hannover (FHH) 2009 bis 2012 http://www.hs- hannover.de/fileadmin/media/doc/pp/wissenstransfer/FHH_Hochschulentwicklun gsplan.pdf

Fachhochschule Munster Hochschulentwicklungsplan 2011-2015 https://en.fh-muenster.de/hochschule/downloads/hochschulentwicklungsplan- fh-muenster-2011-2015.pdf

Hochschulentwicklungsplan Universität Vechta 2010-2015, 2010 http://www.uni- vechta.de/fileadmin/user_upload/documents/Forschung/Hochschulentwicklungspl an_Universitaet_Vechta_2010_-_2015.pdf

Fachhochschule Köln Hochschulentwicklungsplan 2020, 2011 http://www.verwaltung.fh- koeln.de/organisation/dezernatesg/dezernat1/sg13/service/hs_planung /u/00820.php

Fachhochschule Dortmund Hochschulentwicklungsplan 2011-2020 http://www.fh- dortmund.de/de/hs/servicebe/verw/dezernate/v/HEP_2011.pdf

Ruhr-Universität Bochum Hochschulentwicklungsplan 2011-2013 http://www.ruhr-uni- bochum.de/universitaet/leitunggremien/rektorat/pdf/hochschulentwicklungsplan. pdf

Hochschule Bonn-Rhein-Sieg Hochschulentwicklungsplan 2010-2015 http://www.fh-bonn-rhein- sieg.de/fhbrsmedia/Downloads/praesidium/HEP.pdf

Universität Bielefeld Hochschulentwicklungsplan http://www.uni- bielefeld.de/Universitaet/Serviceangebot/Dokumente/hochschulenwickl ungsplan.pdf

Hochschule für Technik, Wirtschaft und Kultur Leipzig Hochschulentwicklungsplan http://www.htwk-leipzig.de/fileadmin/rektorat/download_rektorat/HEP- Konzept_V13_2.pdf

Universität Bonn Entwicklungsplan http://www3.uni-bonn.de/einrichtungen/rektorat/ubo_hep_08_2.pdf

Leuphana Universität Lüneburg Universitätsentwicklungsplanung, 2008 http://www.leuphana.de/fileadmin/user_upload/ueberleuphana/files/Entwickl ungsplan.pdf

Struktur- und Entwicklungsplan der Universität Hohenheim https://gleichstellung.uni- hohenheim.de/fileadmin/einrichtungen/gleichstellung/SEP07.pdf

Technishe Universität Kaiserslautern Hochschulentwicklungsplan, 2008 http://www.uni- kl.de/uploads/media/Hochschulentwicklungsplan.pdf

Hochschulentwicklungsplan der Goethe-Universität 2011 http://www2.uni-frankfurt.de/41601649/hep_2011.pdf

Hochschulentwicklungsplan Fachhochschule Südwestfalen 2012-2020, 2012 http://www4.fh- swf.de/media/downloads/hvbergreifend/HEP_Internet.pdf

Fachhochschule Ludwigshafen am Rhein Hochschulentwicklungsplan http://web.fh-ludwigshafen.de/test/index.nsf/de/hochschulentwic

Universität Potsdam Hochschulentwicklungsplan, 2007 http://potsdam.linke-sds.org/IMG/pdf/hochschulentwicklungsplan_uni.pdf

Hochschulentwicklungsplan 2009 Ernst-Moritz-Arndt-Universität Grefswald, 2009 http://www.uni- greifswald.de/fileadmin/mp/6_informieren/Pressestelle/Dienstleistungen/Dokume nte_Rektorat/HEP_2009_endgueltig.pdf

Hochschule Rhein Main Entwicklungsplan http://www.hs- rm.de/index.php?eID=tx_nawsecuredl&u=0&file=fileadmin/Fachbereiche/Verwal tung/Aktuell/EntwicklungsplanungDerHochschuleRheinMain.pdf&t=13563922 49&hash=f63612226293ec0478bfb03245208601

Strucktur- und Entwicklungsplan Pädagogische Hochschule Schwäbisch Gmünd 2012-2016, 2011 http://www.ph- gmuend.de/deutsch/downloads/rektorat/PH_Gmuend_Struktur- _und_Entwicklungsplan_2012-2016.pdf

.Hochschule Fulda Entwicklungsplan 2011-2015 http://www.fh- fulda.de/fileadmin/WT/allgemeines/FT_Grafiken/Downloads/HSFD_Entwicklun gsplan_Forschung.pdf

Entwicklungsplan 2009-2015 der Hochschule fur Technik und Wirtschaft des Saarland https://www.htw-saarland.de/organisation/strategie/hep_09

Fachhochschule Potsdam Structur - und entwicklungsplan http://www.fh- potsdam.de/fileadmin/fhp_zentrale/dokumente/lisske/STEP_2015.pdf

Strucktur- und Entwicklungsplan der Hochschule Magdeburg- Stendal 2008-2010, 2008 https://www.hs-magdeburg.de/hochschule/leitung/HEP.pdf

Strucktur-und Entwicklungsplan Pädagogische Hochschule Heidelberg 2012-2016 http://www.ph-heidelberg.de/fileadmin/de/hochschule/Struktur- _und_Entwicklungsplan/Struktur- _und_Entwicklungsplan_P%C3%A4dagogische_Hochschule_Heidelberg_2012_ %E2%80%93_2016.pdf

Strucktur- und Entwicklungsplan 2011 bis 2016 University of Education Karlsruhe http://www.ph- karlsruhe.de/fileadmin/user_upload/hochschule/aktuelles/pdf/00_SuE_2011-11- 8.pdf

Strucktur- und Entwicklungsplan Duale Hochschule Baden- Württenberg Villingen-Scwenningen http://www.dhbw- vs.de/fileadmin/content/01_UEBER_UNS/01_Portrait/SEP-091009.pdf

Hochschule Der Medien Stuttgart Strucktur- und Entwicklungsplan http://www.hdm- stuttgart.de/download/berichte/SEP_HdM_2012_bis_2017.pdf

Strucktur- und Entwicklungsplan Albert-Ludwigs-Universitat Freiburg im Breisgau http://www.zuv.uni-freiburg.de/service/sep

Strucktur- und Entwicklungsplan der HafenCity Universitat Hamburg https://www.hcu- hamburg.de/fileadmin/documents/News/Entwicklungsplan_der_HCU_Hamburg. pdf

Universitat Rostock Entwicklungsplan http://www.uni- rostock.de/fileadmin/UniHome/UniLeitung/Universitaetsentwicklungsplan_Gesa mt_v9.pdf

Universität Bamberg Entwicklungsperspective http://www.uni- bamberg.de/fileadmin/uni/verwaltung/presse/Dateien/2011/UEP_2014.pdf

Entwicklungsplan der Justus-Liebig-Universität Gießen 2020, 2011 http://geb.uni- giessen.de/geb/volltexte/2012/9003/pdf/JLU_2020_Entwicklungsplan.p df

Technische Universität Dresden. Die Synergetische Universität, 2012 http://tu- dresden.de/exzellenz/newsletter_downloads/downloads/broschuere_zu kunftskonzept/2013%20Broschuere_Zukunftskonzept.pdf