After first appearing in 1979 in Tennessee, performance funding for higher education went on to be adopted by another 26 states. This monograph reviews research on a multitude of states to address these questions: • What impacts does performance funding have on institutional practices and, ultimately, student outcomes? • What obstacles and unintended effects do performance funding encounter? This monograph finds considerable impacts on institutional practices, weak impacts on student outcomes, substantial obstacles, and sizable unintended impacts. Given this, the monograph closes with a discussion of the implications for future research and for public policymaking on performance funding. This is the 2nd issue of the 39th volume of the Jossey-Bass series ASHE Higher Education Report. Each monograph is the definitive analysis of a tough higher education issue, based on thorough research of pertinent literature and institutional experiences. Topics are identified by a national survey. Noted practitioners and scholars are then commissioned to write the reports, with experts providing critical reviews of each manuscript before publication.

Ultimately, the authors recommend that states create new ways of helping colleges with many at-risk students, define performance indicators and measures better tailored to institutional missions, and improve the capacity of colleges to engage in organizational learning.

Bridging the gap between higher education research and policy making was always a challenge, but the recent calls for more evidence-based policies have opened a window of unprecedented opportunity for researchers to bring more contributions to shaping the future of the European Higher Education Area (EHEA). Encouraged by the success of the 2011 first edition, Romania and Armenia have organised a 2nd edition of the Future of Higher Education – Bologna Process Researchers’ Conference (FOHE-BPRC) in November 2014, with the support of the Italian Presidency of the European Union and as part of the official EHEA agenda. Reuniting over 170 researchers from more than 30 countries, the event was a forum to debate the trends and challenges faced by higher education today and look at the future of European cooperation in higher education. The research volumes offer unique insights regarding the state of affairs of European higher education and research, as well as forward-looking policy proposals. More than 50 articles focus on essential themes in higher education: Internationalization of higher education; Financing and governance; Excellence and the diversification of missions; Teaching, learning and student engagement; Equity and the social dimension of higher education; Education, research and innovation; Quality assurance, The impacts of the Bologna Process on the EHEA and beyond and Evidence-based policies in higher education. "The Bologna process was launched at a time of great optimism about the future of the European project – to which, of course, the reform of higher education across the continent has made a major contribution. Today, for the present, that optimism has faded as economic troubles have accumulated in the Euro-zone, political tensions have been increased on issues such as immigration and armed conflict has broken out in Ukraine. There is clearly a risk that, against this troubled background, the Bologna process itself may falter. There are already signs that it has been downgraded in some countries with evidence of political withdrawal. All the more reason for the voice of higher education researchers to be heard. Since the first conference they have established themselves as powerful stakeholders in the development of the EHEA, who are helping to maintain the momentum of the Bologna process. Their pivotal role has been strengthened by the second Bucharest conference." Peter Scott, Institute of Education, London (General Rapporteur of the FOHE-BPRC first edition)

Higher education is of growing public and political importance for society and the economy. Globalisation is transforming it from a local and national concern into one of international significance. In order to fulfil societal, governmental and business sector needs, many universities are aiming to (re-)position themselves. The book initially considers their “compass”. They aspire to transformational planning, mission and strategy in which social justice is important, people are not treated as mere means to an end, and traditional moral positions are respected. This transformational urge is sometimes vitiated by blunt demands of new public management that overlook universities’ potential for serving the public good. The volume then addresses universities’ success in meeting their targets. Often the challenge in evaluation is the need to reconcile tensions, for example between structure and pastoral care of students; institutional competition and collaboration; roles of academics and administrators; performance-based funding versus increased differentiation. Measurement is supposed to provide discipline, align institutional and state policy, and provide a vital impetus for change. Yet many of these measurement instruments are not fully fit for purpose. They do not take sufficient account of institutional missions, either of “old” or of specialist universities; and sophisticated measurement of the student experience requires massive resources. Change and positioning have become increasingly key elements of a complex but heterogeneous sector requiring new services and upgraded instruments.

Over the past three decades policymakers have been seeking new ways to secure improved performance from higher education institutions. One popular approach has been performance funding, which involves use of a formula to tie funding to institutional performance on specified indicators. This report reviews findings from studies on performance funding programs in a multitude of states. The studies suggest that tying funding to outputs has immediate impacts on colleges in the form of changes in funding, greater awareness by institutions of state priorities and of their own institutional performance, and increased status competition among institutions. Because of these immediate impacts, performance funding produces intermediate institutional changes in the form of greater use of data in institutional planning and policymaking and in changes in academic and student service policies and practices that promise to improve student outcomes. However, claims that performance funding does indeed increase ultimate outcomes--in the form of improved rates of retention, completion of developmental education, and graduation--are not validated by solid data. In the face of this finding, this report identifies obstacles to the effective functioning of performance funding, as well as unintended impacts. The report closes by providing recommendations for overcoming the many obstacles to the effective functioning of performance funding and addressing the unintended impacts documented by the studies reviewed. (Contains 40 footnotes.).

This volume presents the major outcomes of the third edition of the Future of Higher Education – Bologna Process Researchers Conference (FOHE-BPRC 3) which was held on 27-29 November 2017. It acknowledges the importance of a continued dialogue between researchers and decision-makers and benefits from the experience already acquired, this way enabling the higher education community to bring its input into the 2018-2020 European Higher Education Area (EHEA) priorities. The Future of Higher Education – Bologna Process Researchers Conference (FOHE-BPRC) has already established itself as a landmark in the European higher education environment. The two previous editions (17-19 October 2011, 24-26 November 2014), with approximately 200 European and international participants each, covering more than 50 countries each, were organized prior to the Ministerial Conferences, thus encouraging a consistent dialogue between researchers and policy makers. The main conclusions of the FOHE Conferences were presented at the EHEA Ministerial Conferences (2012 and 2015), in order to make the voice of researchers better heard by European policy and decision makers. This volume is dedicated to continuing the collection of evidence and research-based policymaking and further narrowing the gap between policy and research within the EHEA and broader global contexts. It aims to identify the research areas that require more attention prior to the anniversary 2020 EHEA Ministerial Conference, with an emphasis on the new issues on rise in the academic and educational community. This book gives a platform for discussion on key issues between researchers, various direct higher education actors, decision-makers, and the wider public. This book is published under an open access CC BY license.

This crucial book addresses newer practices of resource allocation which tie university funding to indicators of performance. It covers the evolvement of mass higher education and the associated curtailment of funding, the public management reform debate within which performance-based budgeting or funding evolved, and sketches alternative governance and management modes which can be used instead. Four appendices cover more technical matters.