a workshop on good governance in institutions of higher ... · 1005-1035: introduction to good...
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A workshop on Good Governance in
Institutions of Higher Education
Allan Schofield
Associate - The Leadership Foundation for Higher Education, UK
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Programme: Four presentations plus
discussion
1005-1035: Introduction to good governance.
1150-1220: Key challenges to effective institutional
governance.
1330-1400: Supporting academic standards and quality.
1515-1545: Good governance in operation: getting the details
right.
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How does governance typically work in HE?
What do we mean by good governance in HE?
International developments in HE governance.
The main functions and purposes of governance in HE.
The principles and values of good governance.
The consequences of poor governance.
Session 1:
Introduction to Good Governance
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Institutional governance more important in HE systems with high levels of university autonomy.
Usually there are at least two tiers of institutional governance:
a) A body responsible for academic matters (senate, academic board, etc) – membership is primarily academic.
b) A body responsible for corporate matters (board, council, governing body, board of trustees, etc) – membership is mixed but in some countries has a majority of external members.
There may be a third tier body engaging the community.
Governance involves shared responsibilities: board members, the executive, and the academic community.
Diversity of arrangements in UAE e.g. overseas partnerships.
How does governance typically work
in HE?
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What do we mean by good governance
in HE? - 1
Meeting defined requirements (e.g. the CAA Standards).
Meeting the requirements of the funders of HE.
Meeting the requirements of any national governance
codes.
Meeting institutional needs for good governance – how
does a board ‘add value’ in practice?
Providing confidence for students and the community,
including by building institutional reputation.
The need to be clear about who a board is accountable
to….
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How and to whom is a university board accountable?
In law.
To its funders – including government as a funder.
To regulatory authorities.
To contracting partners - including international ones.
To the community (and if so how?).
To its students (and if so how?).
With globalisation such issues become much more important
than in the past
What do we mean by good governance in
HE? - 2
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International developments in HE
governance
The expansion of HE, globalisation and competition are all
changing university governance and management.
Corporate governance is becoming more important.
A trend to a different kind of board less concerned with just
oversight or being ambassadors and more with strategy,
institutional performance, and building reputation.
As a consequence, smaller and more expert boards are
developing, probably meeting more often.
Some critics will see this as a threat to a traditional
university culture, but (in my view) this is not necessarily the
case.
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The main functions and purposes of HE
governance
Governance and not management.
Ensuring compliance with regulatory/funding requirements.
Monitoring management and institutional performance against agreed strategic plans and objectives.
Responsibility for institutional financial health/sustainability.
Balancing reputational risk, innovation and competitiveness.
Oversight of effective academic governance, including achieving defined quality levels.
Ensuring confidence by government, funders and the public.
The challenge for institutions: is the role of the board clear to all those involved?
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The principles and values of good
governance
Governance in universities that are publicly funded needs to
demonstrate a contribution to public good.
Seven standards in public life (‘The Nolan Principles’ in the
UK: selflessness; integrity; objectivity; accountability;
openness; honesty; and leadership).
Avoiding conflicts of interest in board membership (e.g. the
CAA requirement that owners or investors in universities do
not hold executive positions).
The importance of the chair of a board and its secretariat in
maintaining the values of good governance.
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The consequences of poor governance
a) Public Consequences:
Institutional failure (or forced merger with another university).
Damaged institutional reputation.
Financial or legal penalties by funders.
Governments forced to take action with possible consequences for a whole HE system.
b) Private Consequences:
Major internal restructuring and loss of institutional confidence.
Career reputations of senior managers and academics.
University perceived to be ‘at risk’ for years to come.
What are the main issues facing the
governance of institutions of HE in the
UAE ?
Discussion groups
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Session 2: A review of key challenges to
effective institutional governance
Building effective relationships with the senior
management team.
The need for high quality information and performance
indicators.
Creating a culture of effective governance with
appropriate challenge.
Credibility to the academic community.
Assessing the effectiveness and long term impact of
the board.
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Building effective relationships with the
senior management team
The relationship between the board (especially its chair) and
the senior management team (SMT) including the Vice-
Chancellor/CEO is critical for good governance.
Balancing support with constructive challenge.
Board members must be credible to the SMT to challenge
effectively.
Some boards only want to support the SMT, but trust is not
enough: the governing body has to govern.
The need for boards to build less formal relationships with
the SMT outside the boardroom.
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The need for high quality information and
performance indicators
A board can only be effective with high quality and timely
information.
A board needs to know what information it wants, not just
what it receives from the SMT.
Most boards find it useful to have succinct key performance
indicators (KPIs) to monitor how the main elements of the
institutional strategy are being delivered.
The need for regular information to be available about key
institutional risks.
Increasing use of presentational devices for board meetings to
simplify information (e.g. balanced scorecards and ‘traffic
lights’).
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Creating a culture of effective governance
with appropriate challenge
Perhaps the most difficult aspect of governance in all
sectors.
Requires effective relationships. Without mutual respect
constructive challenge is very difficult.
Requires high quality and experienced board members who
understand their role.
Appropriate challenge is much easier where good
information and KPIs are available. Board members need to
understand the ‘business’.
The relationship between the CEO/Vice-Chancellor and the
Chair of the board is crucial.
It is very difficult for effective challenge to be undertaken by
staff and student board members.
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Credibility to the academic community
Most governance is hidden from the academic
community and therefore they know little about it.
In the UK, Australia, the USA etc there are academic
concerns about the growth in power of the governing
body. Therefore a board needs to prove its value.
An increasing challenge is how to improve
communication between the board and the academic
community.
How can board membership of staff and student be made
consistently effective?
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Assessing the effectiveness and long term
impact of the board
There is increasing recognition of the need to assess the
effectiveness and impact of the HE board.
Substantial work in the USA (through AGB) and the UK
(through the LFHE and CUC) [see background paper] in this
area.
The UK has developed a three part framework to assess
effectiveness and impact: enablers of effectiveness;
working relationships and boardroom dynamics;
outcomes…….
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UK Framework for Reviewing Board
Effectiveness in HE
THE ENABLERS OF AN EFFECTIVE GOVERNING
BODY
WORKING RELATIONSHIPS AND
BOARDROOM BEHAVIOUR
THE OUTCOMES OF AN EFFECTIVE GOVERNING
BODY
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Session 3:
Supporting academic standards and quality
through good governance
The role of the board in relation to standards and quality.
The importance of understanding and approving the
institutional strategy.
Understanding effective academic governance and
monitoring its effectiveness.
Active oversight of the quality of the student experience.
Building and protecting the reputation of the institution.
Encouraging effective communication about academic
governance within the institution as a whole.
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The role of the board in relation to standards
and quality
The specific requirements of the CAA.
Responsibility for standards, curriculum, assessment etc
rests with the academic board (or equivalent) and academic
freedom must be maintained.
However, the governing body must be assured that
academic standards and quality are being met to defined
levels.
The body also has a broader responsibility in ensuring that
the overall student experience (including non-academic
aspects) are being met.
In partnerships the role of the board in relation to the
responsibilities of the partners need to be clear.
There are obvious potential tensions and a need for clarity.
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The importance of understanding and
approving the institutional strategy
A board should consider and approve the academic strategy
e.g. major new developments, internationalisation, etc.
The need to ensure that new developments are related to
mission.
A board needs to ensure that new developments are
achievable, sustainable and grounded in the ‘reality’ of the HE
market.
A board relies on the executive (SMT) to prepare the strategy.
A board needs to understand enough about developments in
HE to fulfil its strategic role.
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Understanding effective academic
governance and monitoring its effectiveness
Academic governance = standards and awards (the CAA
role); research governance (including research ethics);
aspects of intellectual property; etc.
Whilst not directly involved in academic governance a
board may (in some HE systems) remain legally liable, and
therefore needs to get assurance that academic
governance works in practice.
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Active oversight of the quality of the student
experience
A board needs to provide oversight of the totality of the
student experience.
In fee paying HE systems students and parents expect
boards/trustees to be actively engaged in this area.
Major issues for boards in relation to internationalisation
and the student experience.
In future the reputational damage caused by student
complaints is a major board challenge.
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Building and protecting the reputation
of the institution
With the support of management a board must protect the
reputation of a university.
No effective board can see institutional reputation
decline.
Building and protecting reputation involves active
oversight of strategic risks.
Risks are not just financial or political – there are major
academic risks as well.
For large international universities there are many
unpredictable risks to reputation. A board needs to agree
an ‘appetite’ for risk and develop processes to oversee
the consequences of its decisions.
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Encouraging effective communication
about academic governance
The role of the board in relation to academic governance is
particularly controversial.
In most universities in this area a board will work in
partnership with others, especially academic leaders.
The need for a board to respect (and indeed support)
academic freedom.
More effective communication about how a university
deals with the ‘modern’ challenges to academic
governance is likely to result in better co-operation
between a board and the academic community.
Discussion groups
How can good governance support
academic quality and standards in the
UAE?
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Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
Supporting the board: the importance of the role of the secretariat.
Informing the board.
Building the board.
Regularly reviewing the effectiveness of the board.
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Good governance in operation: getting the
details right
The need for effective board membership.
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Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
30
Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
31
Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
Supporting the board: the importance of the role of the secretariat.
32
Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
Supporting the board: the importance of the role of the secretariat.
Informing the board.
33
Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
Supporting the board: the importance of the role of the secretariat.
Informing the board.
Building the board.
34
Good governance in operation: getting the
details right
The need for effective board membership.
The size of the board.
The governance structure and number of meetings.
Supporting the board: the importance of the role of the secretariat.
Informing the board.
Building the board.
Regularly reviewing the effectiveness of the board.
Thank you!