This discussion has focussed a great deal on the question of the SOML losing money and spending money, but what should be important to the University is creating value. I used to work in business and banking before I got the insane idea that I wanted a degree. It's readily accepted in business that there are some aspects of an operation which lose money in themselves but still add value to the entire operation, which means that the more profitable parts of the business have to subsidise areas that lose money. Businesses often do this, investing in a sector for a long time even while making a loss, because it raises the profile of the overall brand. Branson did this for years with Virgin Atlantic which took a long time to make a profit, but he recognised that it added value to all of the less glamorous parts of the Virgin empire which actually were making money.
There are a couple of ways this is applicable to the situation of the Modern Languages Department and the SLTs. Firstly, the University is a charity devoted to education and it is not short of money as a whole. It should therefore not be run like a business in terms of making a profit, where each of the component departments is expected to deliver the same amount of contribution to the university. The Principal seems to be trying to copy business models on profitability but she is missing the big picture and is drawing conclusions that many leading business people would reject. The SOML as a whole delivers a huge amount to the University in terms of prestige. By having such an excellent SOML with five separate language departments, this sets us apart from lesser universities which have decided to close language departments. One reason that the FCO has a long record of recruiting people from St Andrews is because of its reputation for excellent language teaching. This is a distinction we need to maintain and not join the ranks of these inferior universities. St Andrews is too good for such a short-sighted and short-term step. The SOML also delivers to the University in terms of its university rankings. With the German, French and Spanish departments all ranked in the top ten nationally, this clearly adds value to the University both in terms of prestige as well as contributing to a higher ranking for St Andrews University as a whole.
It seems demonstrably clear that the loss of the SLTs would negatively impact on their respective departments, the overall quality of the teaching, research and student satisfaction, which would all ultimately feed into the University’s rankings and general prestige. The Principal should therefore think more than ever, like Sir Richard, about the huge amount of value that the SOML adds to the university as a whole and not simply the bottom line of its contribution.
