a workshop on good governance in institutions of higher ... · 1005-1035: introduction to good...

A workshop on Good Governance in

Institutions of Higher Education

Allan Schofield

Associate - The Leadership Foundation for Higher Education, UK

as@highered.powernet.co.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.

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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.

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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.

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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.

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.

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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.

Thank you!