Towards financial resilience

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Last edit: 7 Feb 2025
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The University of Twente has financial challenges. Strong and immediate adjustments were made in 2024 so that we become and remain financially sound. The 2025 draft budget shows that we are on the right track. But optimisation and changes remain necessary. Through news items on the service portal, we inform about the current situation and its impact on UT and everyone who works or studies here. At the bottom of this page, you will find an overview of all messages. You will find more information about what is happening and how we are realising the transformations and optimisations, now and in the longer term. Finally, there is also a FAQ where you will find answers to frequently asked questions.

FINANCIAL developments

As a university, we must continue to make savings. The main reasons for this are the declining number of students enrolling in studies and the structural reduction of the state contribution. Added to this, the future is uncertain. Thanks to the advent of the Internationalisation in Balance Act (WiB) and planned cuts in research funding opportunities and higher education. These uncertainties necessitate a conservative course.

The total income of the University of Twents for 2025 is €515 million. Over 60% of this amount consists of direct funding for research and education and comes from the central government. This funding is referred to as the ‘first flow of money’. UT's savings task runs through the described challenges of a further €11 million in 2026 with several tens of millions more expected pending government plans.

Reinventing our UT

Addressing UT's financial challenges requires a clear vision and strategy. Where do we want and need to go and how do we tackle it? To this end, the Shaping2030 mission statement was updated and the position paper Reinventing UT was drafted in 2024.

Reinventing our UT makes clear where our strengths lie, what challenges lie ahead and what that means for our education, research and valorisation activities. Together with our three priorities, it gives direction to the choices we (have to) make now and in the future.

  1. Maintaining student intake
  2. Future-proofing education
  3. Increasing income from second and thirdstream funding

Seven principles - ensuring our UT DNA

From Reinventing UT, the SB then translated the vision for the future into seven UT principles to help us assuring our ‘DNA’ in the transition process to become a future proof UT.

Integrated approach: five Clusters

To achieve a financially healthy organisation, UT is following an integrated approach consisting of five clusters. Below you will briefly find more information for each cluster, including an estimate of the financial impact. 

For each cluster, an estimate of the savings amount has been made to give some insight into orders of magnitude. The estimate is tailored to the changes being implemented. The actual savings that can ultimately be realised will become clear as the products are delivered step by step and the changes are implemented. As soon as new information is known, this will be updated.

  • Future-proof Education

    Lead Dean: Tanya Bondarouk (BMS)
    Cluster Lead: Felix van Urk (SP)

    Estimated savings: €6-10 million

    Our assignment

    Our assignment is to ensure all our educational programmes remain relevant and impactful. Therefore, we are developing a comprehensive strategy. A blueprint designed to attract a steady flow of students and lifelong learners while staying true to our core values in learning and teaching.

    Our goals and deliverables

    To achieve our goals, we are focusing on the following key areas:

    • Strategy to ensure a steady influx
      We are crafting a robust and forward-thinking strategy that guarantees a steady influx of students and learners, ensuring our educational programmes remain relevant, innovative and attractive.
    • Transparent budget procedures
      Establishing clear and efficient procedures to allocate and optimise budgets for our educational programmes. This ensures sustainability and allows us to responsibly invest.
    • An implementation plan
      By the end of the 2025 academic year, our strategy and budget procedures will have been decided on. During the academic year 2026/2027, they will be fully implemented and actively applied. This ensures that we transition smoothly from planning to action.
    • Streamlined IT Processes for our lifelong learning programmes
      We are prioritising the optimisation of key (IT) systems that our faculties need to deliver both small- and large-scale lifelong learning programmes effectively and efficiently.

    Our roadmap and timeline

    2024: Laying the foundation
    We began preparatory work, setting the stage for implementation

    2025: Turning plans and ideas into actions
    All preparations are transformed into tangible outcomes. Decisions are made, products are finalised, and the framework is put in place.

    From 2026 onwards: implement, monitor, and refine
    We will be fully operational with our new strategy, procedures, and adjusted IT systems. Continuous evaluation and adjustments will ensure we meet our goals and stay adaptable to future needs.

  • Future-proof Research and Innovation (R&I)

    Lead Dean: Boudewijn Haverkort (EEMCS)
    Cluster Lead: Wiebke Eberhardt (SP)

    Estimated savings: to be determined

    Our assignment

    Our assignment is to guide and develop key transitions in Research and Innovation (R&I) at UT, by identifying, prioritising and tackling R&I related challenges.

    We align running (strategic and operational) initiatives, build on existing work from colleagues across the UT and work with two small dedicated teams on two work packages.   

    Our goals and deliverables

    These two work packages entail:

    1. Our first work package involves delivering an updated R&I strategy, in which UT’s impact domains play a key role. Within this work package, we will also deliver an implementation plan to ensure that everyone for whom the updated strategy is relevant, can effectively work with it.
    2. Our second work package involves analysing the current financing of R&I and the related funding streams. As part of this package, we will deliver an action plan that outlines the path towards improvements. Finally, this work package will also include a hands-on funding strategy framework.

    Both workpackages includes directions for the cluster building blocks Research infrastructure, Effective cross faculty (educational) innovation and Efficient and Effective support processes.

    Our roadmap and timeline

    Both work packages are being worked on simultaneously by different teams. This means that we will complete both work packages by July 2025. In April and May, we will deliver the first results.

  • Effective cross faculty (educational) innovation

    Lead Dean: Heleen Miedema (ATLAS)
    Cluster Lead: Miriam Iliohan (DesignLab)

    Estimated savings: €2-3 million

    Our assignment

    Our assignment is to build a scalable, sustainable platform that focusses on how people learn, create, and collaborate. This platform will be fully aligned with our mission to foster collaboration across disciplines and create a positive societal impact through the impact domains of UT’s faculties and institutes. By analysing how learning happens across different fields, we aim to position UT as a global leader in innovation, showcasing meaningful projects and partnerships that make a difference. With this unique approach we aim to attract more students, offering cutting-edge innovative programmes, while streamlining operations to reduce costs, enhance education and research quality, and achieve significant efficiencies.

    Our goals and deliverables

    Firstly, we will conduct an inventory and analysis of how learning occurs across different faculties. Next, we will create a blueprint that identifies opportunities to save money and improve operations by strategically combining and integrating key interfaculty programs. Afterward, we will finalise the design and launch the first pilot project. Additionally, we will develop policies, financial structures, and a governance model that promote innovation in cross-faculty education. Ultimately, our goal is to create a strong, unified system that reimagines how we learn, create, and collaborate.

    Our roadmap and timeline

    The first three actions will be completed in 2025. We will deliver a product each quarter. By 2026, we will also have completed the associated policies, financial structure, and governance model.

  • Towards an effective and efficient research infrastructure

    Lead Dean: Hans Hilgenkamp (TNW/S&T)
    Cluster Lead: Amir Ametovic (SP)

    Estimated savings: €1-2 million

    Our assignment

    Our assignment is to develop a policy, a way of working, to ensure the efficient use of existing research infrastructure. Part of this, is a framework that enables external organisations to responsibly use our infrastructure and equipment (I&E). We will also gather insights on the best ways to allocate infrastructure costs to external projects. Finally, we will create a multi-year strategic plan for infrastructure, along with an investment programme to support it.

    Our goals and deliverables

    To accomplish our assignment, we will deliver the following products:

    • A database for I&E, providing insights into capacity and usage, and the ability to reserve I&E.
    • Clear financial agreements (policy) for the optimal and integrated internal use of I&E.
    • Guidelines and agreements for offering I&E to external parties.
    • Cost allocation agreements, with clear methods for effectively charging I&E costs to external projects.
    • A multi-year strategic infrastructure plan, including a detailed investment programme.

    Our roadmap and timeline

    We are working with three subclusters, each delivering the necessary products. The first products, such as advices and a list of requirements, will be delivered early this year. Ultimately, our assignment must be completed by July of this year.

  • Efficient and effective support processes

    Lead Dean: Bart Koopman (ET)
    Cluster Lead: José Franken (HR)

    Estimated savings: €8-12 million

    Our assignment

    Our assignment is to harmonise and standardise work processes across each support service unit (within faculties and services) by working together in teams with clear targets on how to work. We will initiate and support an effective approach to achieve results, focusing on hours saved. Over time, our joint efforts will lead to a more unified and efficient support organisation. We carry out our assignment in close collaboration with the University Committee Management (UCB), the Executive Board’s advisory committee regarding operational management of UT. UCB is our principal and partner.

    Our goals and deliverables

    As a cluster, we will monitor and align initiatives to establish a reduction of support hours by 10% based on baseline of 1 September 2023. Furthermore, we, in collaboration with among others UT’s Finance department, will develop steering indicators for short term impact, such as the effects of the acute measures. We will also deliver a detailed design for standardised support processes that are effective, and at the same of high quality.

    Our roadmap and timeline

    We will continuously monitor and harmonise. By 2027, we will be able to work with effective, standardised support processes, at the administrative, technical, practical, and decision-making levels. Our key focus areas in which we will achieve short-term results are:

    • Implementation of a standardised approach to monitoring progress in improvement initiatives and reporting results
    • Implementation of a standardised way of working for all departmental improvement initiatives

Short-term MEASURES WE ARE TAKING

Over the past three years, UT has spent and invested more than it has received in funding. This was a conscious choice, because with an eye to the future, several investments are necessary. As also stated in the draft budget, in 2025, that deficit should not exceed one per cent. And by 2026, we want income and expenditure to be fully balanced. Besides the strategic and forward-looking choices, acute measures have been taken and short-term measures are needed. Therefore:

  • we are saving as much as possible from the Central Strategic Budget.
  • have taken some smaller strategic decisions that produce short-term savings.
  • has given each department and faculty a mission statement. It is up to the department or faculty to decide how this tasking (a reduction in the budget) will be achieved.

With everything we do, we build on the choices made earlier.

  • Quality of education comes first

    Maintaining the quality of education is a high priority. In national comparisons such as the National Student Survey, the UT has consistently scored among the best universities in recent years. UT wants to maintain and continue to strengthen this leading position in student appreciation. This calls for priority in staff deployment, but also the deployment of resources to sustain educational facilities in the broadest sense.

  • Future-proof choices

    All choices made are always assessed to see whether they contribute to our resilience and future- sustainability. Is a choice in line with the course set out in Reinventing our UT and based on our principles and core values?

  • Active steering and monitoring

    Achieving the intentions as formulated in the budget requires active steering at all levels. Monitoring the progress will play an important role at both university and faculty and service department level, so that the Executive Board, faculty boards and service directors can make timely adjustments when the situation demands it. The participatory bodies, such as the University Council and the faculty and service boards, will each be able to discuss this in their domain. In this way, we jointly ensure that we set a realistic course that leads to what we aim for and limit unwanted side effects.

ACUTE MEASURES

Acute (temporary) measures were taken in 2024 and will remain in place in 2025.

WHAT WILL YOU NOTICE?

UT's financial situation affects our daily work and us as a UT community. Sometimes UT-wide, for example in service levels for specific services. But also at the level of specific service units, faculties or scientific institutes, these choices have an effect. Where necessary, your manager will inform you earlier or further about the choices and consequences. Some plans still need further elaboration and will take shape in the coming period.

The financial situation is a recurring topic of conversation within our community. We realise that the necessary financial choices we make together can be painful for many colleagues. We also know that the current situation can bring uncertainty. If you have concerns or questions, please discuss it in your team, with your supervisor or with your HR-advisor.

It may well be that you have questions about the current situation for which you cannot find a direct answer. If so, do not hesitate to send us an email so we can direct your question to the right person. Also, any suggestions on this matter are always welcome.

specific INFORMATION FOR FACULTIES AND SERVICE DEPARTMENTS

In this section, you will find (if applicable) information for specific faculties and service departments.

Below is an overview of all recent news items on this topic.

Frequently Asked Questions

Via your manager, gatherings, work meetings, news items on the service portal and this dossierpage, we try to keep you as up to date as possible on the current state of UT and that of your faculty, service department or institute. We collect all the questions we receive. Below you will find an overview of the most frequently asked questions, because these may be questions that you also have. If you still have a question, please let us know via info@utwente.nl.

General 

  • At weekends or on birthdays, my friends and family ask me how everything is going with UT. How should I respond to that?

    Just like other universities, University of Twente is currently facing financial challenges. UT has indicated that it needs to make firm adjustments to remain financially sound. This is due to a number of factors, such as less growth in student intake figures, debates on internationalisation, government cutbacks and rising costs. UT is currently working hard to establish both a future-oriented vision and practical measures to get everything back on track.

  • What is UT’s approach to properly address current financial challenges?

    UT is opting for a dual-track strategy. First, UT introduced instant measures for the short term. Second, UT is working in clusters to arrive at measures, policies and projects that will have both short-term and medium-term effects. However, it requires more than instant measures and clusters to help sustainably solve UT’s problems. This is why UT is also working on a long-term vision for our organisation titled Reinventing UT, which will also be translated into a roadmap to achieve that future outlook.

    Whenever one or more measures are introduced, we will inform everyone about this via the service portal or via a UT-all mailing. In that information, we will try to outline the reasons for these measures to the best of our ability. This dossier page under the heading Updates lists all updates on the different measures.

  • What is the difference between the clusters and the Building Blocks?

    The Building Blocks started as a set of 20 strategic and operational measures aimed at helping UT become and remain financially sound. From all Building Blocks, steps have since been taken to fulfil their assignments, varying from managing the registration of holidays to advice on effective decision-making. With that, it was time for a new phase. Given the substantive coherence, part of this second phase is to cluster the Building Blocks according to five themes.

  • We distinguish between first, second or third funding flows; what does this mean?

    The first funding flow comprises direct government funding for education and research purposes. Universities and UMCs independently decide how to spend these funds in carrying out their statutory duties.

    The second funding flow is indirect government funding and comprises grants for research projects which researchers from universities and UMCs competitively acquire via the Dutch Research Council (NWO), The Netherlands Organisation for Health Research and Development (ZonMw) and the Royal Academy of Arts and Sciences (KNAW). As a university, we need to be able to account for the hours worked to receive such grants, which is why time registration on projects in Unit4 is essential.

    Commercial funding is the third funding flow and comprises all other public and private funding for research assignments and contract teaching, including public financial resources competitively granted by the European Union. (Source: OCW website in dutch). Again, a proper registration of hours in Unit4 is essential.

What can i do?

  • I would like to contribute to UT’s priority to increase the second and third funding flows. Where can I find the right calls for funding?

    The service portal has a specific page with research support and an overview of different grant applications. This page also directs you to where you can search for a grant.

  • How can I help increase student intake?

    This can be done in lots of different ways such as participating in information sessions at secondary schools and small-scale information events to simply sharing posts on your social media. Of course, you do not need to do it all! You will find a list of all possibilities on the ambassador team page.

  • As an employee, what can I do in this situation?

    It is important to keep yourself well informed via the aforementioned channels so that you are up to date with the latest information. Do not linger with questions. If you have any questions, please ask your manager. Sharing good ideas can also make a huge difference. Therefore, do not hesitate to offer any suggestions that can help avoid tailor-made or duplicate work or that simplify work processes. At the same time, try to do the best job possible and be critical of expenses and, of course, register your hours in time, both when it comes to project hours in Unit4 and holiday hours in AFAS.

    In terms of the impact on research, it is essential to know that the service portal has a specific page with research support and an overview of different grant applications. This may help you continue your research as best you can despite the challenges. In terms of education, it is important to keep up quality and to be creative in finding solutions for any problems that may occur.

    To help boost student intake, you could participate in information sessions at secondary schools and small-scale information events or simply share posts on your social media. You will find a list of all possibilities on the ambassador team page. Of course, you do not need to do everything, but every effort counts.

  • Who can I contact if I want to contribute to solutions in these times of financial uncertainty?

    Based on the information you receive through the UT channels, we can imagine that you have questions, but also that you might have ideas for the future. Please feel free to share your suggestions anytime via your manager of by sending an e-mail to info@utwente.nl so we can consider them or contact you.

Information and communication

  • Where can I find more information on the financial situation?

    In addition to our daily commitment to provide good education and perform research, much is happening in our university that results from UT’s financially weaker period. As a university as a whole, we strive for improvement, while at the same time faculties and service departments have their own approach.

    On this dossier page, we collect as much relevant and available information as possible on the current situation. It has UT-wide information, and this page also directs you to information from your faculty or service department. Additionally, we will keep you up to date via the service portal on UT’s situation in general, but also on any instant measures and specific situations. You will receive a UT-all mailing of any high-impact developments. Each month, all deans, portfolio managers, managing directors and the service department directors are kept jointly informed by the Executive Board on the state of play and developments towards a future-proof UT.

  • Whom should I contact with any questions about the implications of the situation for my work?

    We can easily understand that you have questions based on the information you receive through UT channels. Please feel free to contact your own manager at any time to discuss the information and developments and make the link to what these mean for your daily work. Each month, all deans, portfolio managers, managing directors and the service department directors are kept jointly informed by the Executive Board on the state of play and developments towards a future-proof UT. In turn, they will then share this information within your faculty, service department or institute.

  • I worry that negative sentiment may affect colleagues' motivation and loyalty. What does UT do to prevent avoidable employee turnover?

    We understand that negative sentiment may affect our staff's motivation and loyalty. We highly value a positive working environment and therefore do our utmost to avoid unnecessary exodus. We are committed to open and transparent communication, offer support and guidance to staff and invest in professional development and career opportunities. We encourage everyone to share both their concerns and suggestions, so that we can all work towards a positive working environment in these uncertain times.

  • Should there not be more reorganisations? Some necessary measures may be painful, but at least we know where we stand.

    A careful approach is of paramount importance to us. We understand that clarity is essential for everyone at UT. While some necessary measures could be painful, we want to make sure we have carefully explored all possible scenarios before making any final decisions. We are currently exploring different options, both within individual units and within the university as a whole. It is important that we adopt a considered and reasoned approach to determine the best way forward.

  • The Executive Board has indicated that you can best ask your questions at the Executive Board on tour sessions and beyond. Where do I turn to with questions or remarks that came to mind after the end of such a session?

    You may direct your questions to your own manager or your HR adviser, or you can send an e-mail to info@utwente.nl. We would be happy to answer your questions, also after the sessions. We would also be happy to receive your suggestions about this topic via this e-mail address.

Unit-specific information

  • Where can I find specific information about my own faculty or service department?

    On this page, we collect as much relevant and available information as possible on the current situation. It has UT-wide information, and this page also directs you to information from your faculty or service department.

  • The Executive Board visited my faculty or service department for an update. Will this be done more frequently or was this a one-off initiative?

    In the past months, from September to December 2024, the Executive Board members visited all faculties and almost all service departments during department-wide sessions. The purpose of these sessions is for the Executive Board to explain the UT-wide situation and to answer any questions. Next, the Faculty Board or the service department director can zoom in on the specific situation of the service department/faculty. The sessions were appreciated and will therefore continue in the new year.

Strategy and future

  • What are the university’s future plans? What will the university be like in about five years’ time?

    UT focuses on its current situation by means of long-term and short-term measures. This requires a clear vision. Reinventing UT offers an initial draft of our strengths, the challenges ahead of us and what this means for education, research and knowledge transfer activities. It gives direction to the decisions we need to make. In the next few months, this draft will be further developed and fleshed out with different groups within the organisation, starting with the Executive Board and the Strategic Council. Also the Supervisory Board and the University Council will be included in this. This, of course, subsequently envisages a process involving widespread participation across the entire organisation.

    A UT institutional plan will be drawn up based on this approach. This will provide a more detailed plan of UT’s future in five years’ time and on how we will achieve this. The institutional plan will be ready before the summer of 2025.

  • What is the status of the ‘Reinventing UT’ document?

    It calls for a clear vision to address UT’s financial challenges: the dot on the horizon. Previously, the Shaping2030 mission had been refocused and now a position paper has been formulated. Reinventing our UT shows our strengths, the challenges ahead of us and what that means for our education, research and knowledge transfer activities. It is a document that gives direction to the decisions we need to make now and in the future.

  • What do the Ministry of Education, Culture and Science's potentially upcoming nationwide major cuts mean?

    As is customary, we are developing different scenarios for this. It potentially means 10-15% less revenue for UT. Taking on board all uncertain factors, as UT, it is important for us to be able to respond quickly to changes and tailor our organisation accordingly. It is up to all of us to do our best for this and to turn these changes into a success. All previously mentioned measures are aimed at developing a future-proof UT with a unique stamp, like the one we presently have.

  • In what way are lessons learned from the required changes so that future responses and adjustments can be made more quickly?

    The way we are organised does not always contribute to quick response and adjustments. Through clusters, we work at different levels to achieve an effective and efficient but also adaptive organisation. To this end, scenarios are currently being developed in the different clusters and in the new institutional plan.

  • Has UT developed different scenarios that take into account any possible changes in government grants, student intake figures, etc., and the impact thereof on UT?

    All Dutch universities are under pressure. We are no exception. We always have to take different scenarios into account, and these are always calculated. This time, we need to gear up faster with a wide variety of results than was previously the case due to demographical and political developments that cause government grants and student intake to contract. While we do not yet know exactly what the impact will be, we are actively pursuing cost-conscious education, sharpened focus in our profile and seizing opportunities, among other things. Regardless of how the scenarios will evolve, these goals continue to be very important to us.

  • How does the Executive Board envisage the practical implementation of ‘future-proof UT’ in the short term, e.g. in six to twelve months? Has a timeline with benchmarks also been set out for this?

    The ambition is to have the future vision ready before the summer of 2025, laid down in an institutional long-term plan. The Executive Board aims to have finalised a UT-wide plan for the realisation of our future-proof UT no later than in December 2025, of which a UT-wide organisational change or possible reorganisation may form part.

Potential impact of an organisational change/ reorganisation

  • When does the Executive Board expect to have the matter of downsizing finalised? In other words, when will there be any certainty of the impact on individual staff members?

    This is as yet difficult to specify. It is currently only known that a reorganisation is going to take place at the S&T faculty.

    The ambition is to have an institutional long-term plan ready before the summer of 2025. This will allow a better understanding of the steps needed to achieve our objectives and of what it means for the organisation and by extension for individual staff members. The aim is to have this plan ready in December 2025 at the latest.

  • Will staff be given the opportunity to voluntarily make place for colleagues, supported by a redundancy scheme in case of a unit reorganisation? And will there be a scheme that allows for early retirement?

    This is not yet known at present. We consider a number of different ways to cut costs at the university. Personnel costs are a major item on the annual budget, however, there are also other costs. The annual performance appraisal with your manager could be a good time to share your thoughts about this. However, we cannot yet indicate whether or not there will be a redundancy scheme.

ACUTE MEASURES

  • Why was the decision taken to stop all student jobs? To what extent was the impact on staff, students and the quality of education taken into consideration in this decision?

    Due to UT’s financial situation, following the strategic discussions and the meeting with the University Council, the Executive Board announced a number of urgent measures in July 2024 which had to be implemented immediately. The Executive Board decided to instantly stop the use of Studentjobs (student assistants and flexible student workers). This measure allowed UT to quickly realise an ongoing cost reduction.

    When taking this decision, account was taken of the impact on staff, students and the quality of education. Faculties and service departments were asked to identify the impact of these drastic measures and to develop a proposal for the implementation thereof, in compliance with established procedures and agreements. As far as measures affected specific staff or students, this was first directly communicated with them where possible.

  • Why was all external hiring halted, on what basis are exceptions made and who reviews them?

    Due to UT’s financial situation, following the strategic discussions and the meeting with the University Council, the Executive Board announced a number of urgent measures in July 2024 which had to be implemented immediately. The Executive Board decided on a vacancy freeze effective immediately for vacancies funded by direct government funding. This applies to all vacancies. Exceptions are outlined in this document (in dutch).

Updates

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