Task Force onTask Force onGovernanceGovernance

ReflectionsReflections

Jon HaglerJon Hagler

May 26, 2009May 26, 2009

IntroductionIntroduction

Privileged to be with you todayPrivileged to be with you today A very important subjectA very important subject How can I add value?How can I add value?

• A different perspectiveA different perspective• A lifetime of observing governanceA lifetime of observing governance• Connect the work of Vision 2020 to this task Connect the work of Vision 2020 to this task

forceforce• Hopefully, some useful suggestionsHopefully, some useful suggestions• Emphasis on Process, Not DetailsEmphasis on Process, Not Details

Format: some remarks, then dialogueFormat: some remarks, then dialogue

Does Governance Matter?Does Governance Matter?One PerspectiveOne Perspective

Half a century of observations, experience, Half a century of observations, experience, and involvementand involvement

As analyst, investor and participantAs analyst, investor and participant A corporate example of failed governanceA corporate example of failed governance A non-profit example of failed governanceA non-profit example of failed governance Other examplesOther examples

• Adelphi U, Enron, Tyco, World Com, MA HMO’s, Adelphi U, Enron, Tyco, World Com, MA HMO’s, Banks, Bear Stearns, AIG, etc., etc.Banks, Bear Stearns, AIG, etc., etc.

Answer: It has always been crucial, and it Answer: It has always been crucial, and it will remain crucialwill remain crucial

Role of 2020 in GovernanceRole of 2020 in Governance

Prior Aspirational Studies of the ’60’s Prior Aspirational Studies of the ’60’s & ’80’s: important in TAMU evolution& ’80’s: important in TAMU evolution

Need for broad involvement from U Need for broad involvement from U community to consider anewcommunity to consider anew

Poor Vision or Bad Strategies can kill; Poor Vision or Bad Strategies can kill; organizations need an over - arching organizations need an over - arching VisionVision

Otherwise, Governance to what end?Otherwise, Governance to what end?

Highlights of Vision 2020Highlights of Vision 2020

250+ person task force250+ person task force 12 Imperatives12 Imperatives Regent’s formally endorsed, citing Regent’s formally endorsed, citing

“generational” nature of work“generational” nature of work Initiated by President BowenInitiated by President Bowen Embraced by President GatesEmbraced by President Gates Embraced by President MuranoEmbraced by President Murano Maybe not a bad idea to use it as a Maybe not a bad idea to use it as a

starting pointstarting point

2020 on Governance2020 on Governance

First par (in Governance Imperative)First par (in Governance Imperative)• Vision, environment, resources, leadership, Vision, environment, resources, leadership,

Regents take high ground (policy), clear & Regents take high ground (policy), clear & cooperative relationships between U & System, cooperative relationships between U & System, System admin must acknowledge U’s role as System admin must acknowledge U’s role as CRU with national peers, quality.CRU with national peers, quality.

U admin must make decisions through U admin must make decisions through process of openness and appropriate process of openness and appropriate faculty and staff participationfaculty and staff participation

Faculty Senate statement on shared Faculty Senate statement on shared governance, 1998-1999 (Speaker Kaplan) governance, 1998-1999 (Speaker Kaplan) advance materials for Task Forceadvance materials for Task Force

2020 on Governance, Imperative 2020 on Governance, Imperative 1010

Five PreceptsFive Precepts Ten Goals, one of whichTen Goals, one of which

• ““Structure U so that decisions are made Structure U so that decisions are made by the appropriate and most by the appropriate and most knowledgeable party regardless of knowledgeable party regardless of level”level”

2020 on Governance: Summary2020 on Governance: Summary

Dealt with Strategic VisionDealt with Strategic Vision Said Enlightened Governance and Said Enlightened Governance and

Leadership was an ImperativeLeadership was an Imperative Was explicit about several tenets of good Was explicit about several tenets of good

governance, such asgovernance, such as Quality at the top, in recruiting, and in Quality at the top, in recruiting, and in

decision makingdecision making Decisions through a process characterized Decisions through a process characterized

by openness and appropriate faculty and by openness and appropriate faculty and staff participationstaff participation

2020: Did We Forget Students?2020: Did We Forget Students?

2 on 12 member Exec Committee2 on 12 member Exec Committee 8 others on theme groups8 others on theme groups Only two imperatives do not directly Only two imperatives do not directly

benefit students (9 & 12)benefit students (9 & 12) Are the purpose of our existenceAre the purpose of our existence Reality of transitional existence to Reality of transitional existence to

another stakeholder’s status (AFS)another stakeholder’s status (AFS) But should have a defined roleBut should have a defined role

2020 in 20092020 in 2009One Old Man’s PerspectiveOne Old Man’s Perspective

First Decade: Progress in some important areasFirst Decade: Progress in some important areas AMP an important collaborative initiative AMP an important collaborative initiative But trends in governance not favorable*But trends in governance not favorable* Opinion: Not on a 2020 success trajectory, and Opinion: Not on a 2020 success trajectory, and

most important missing ingredient is governancemost important missing ingredient is governance Appears Chancellor and Regents have Appears Chancellor and Regents have

repudiated, by their actions, Vision 2020 – those repudiated, by their actions, Vision 2020 – those who worked on it and the Regents who endorsed who worked on it and the Regents who endorsed it.it.

Guess: Without a major course change on Guess: Without a major course change on governance, failure of 2020 appears inevitablegovernance, failure of 2020 appears inevitable

* Adverse Trends in Governance* Adverse Trends in Governance

Breakdown in Breakdown in processprocess of openness and of openness and appropriate involvement;appropriate involvement;

Flawed Flawed processprocess of Presidential and VP of Presidential and VP appointmentsappointments

If I understand, explicit rejection of basic If I understand, explicit rejection of basic tenets of “shared” governancetenets of “shared” governance

If I understand, inappropriate involvement If I understand, inappropriate involvement by System in flagship university policy and by System in flagship university policy and administration, probably in other areasadministration, probably in other areas

Am I too paranoid?Am I too paranoid? Is governance unimportant? Doesn’t Is governance unimportant? Doesn’t

vibrancy of core mission suffer if faculty vibrancy of core mission suffer if faculty and other stakeholders are treated as and other stakeholders are treated as either mere employees or as incidental?either mere employees or as incidental?

Lombardi Study 2002: Lombardi Study 2002: Research U Research U competitivenesscompetitiveness (i.e., Vision 2020) comes (i.e., Vision 2020) comes from high quality within both academic from high quality within both academic core and administrative shell of Ucore and administrative shell of U

In the more competitive research U’s, a In the more competitive research U’s, a pattern of delegating substantially all pattern of delegating substantially all academic and administrative authority academic and administrative authority from systemfrom system to campusto campus is is evidentevident..

Am I too paranoid?Am I too paranoid? Pres Bowen & Regents agreed on 2020 mission Pres Bowen & Regents agreed on 2020 mission

and on governance and on governance Pres Gates articulated and practiced shared Pres Gates articulated and practiced shared

governancegovernance Spkr Kaplan / Faculty Senate ’98-’99 endorsedSpkr Kaplan / Faculty Senate ’98-’99 endorsed University Leadership CouncilUniversity Leadership Council University of ArizonaUniversity of Arizona Believe states of CO, Iowa, Hawaii have Believe states of CO, Iowa, Hawaii have

introduced codes of fiduciary conductintroduced codes of fiduciary conduct Question: why do we want to return to the dark Question: why do we want to return to the dark

ages? ages?

So, What Now?So, What Now?

Have to face issue; task force is Have to face issue; task force is appropriate and essential, in my appropriate and essential, in my opinionopinion

If you don’t speak for the university If you don’t speak for the university community stakeholders, who will?community stakeholders, who will?

This is best, perhaps only, chance to This is best, perhaps only, chance to confront issues during next decadeconfront issues during next decade

One Danger? Settling for rule making One Danger? Settling for rule making on subsidiary issueson subsidiary issues

So, What Now?So, What Now? Have to capture the intellectual high ground onHave to capture the intellectual high ground on

• Why good governance at Why good governance at allall levels is crucial levels is crucial• Why we fall short now: explicit about failuresWhy we fall short now: explicit about failures

The genesis of our troubles is political interferenceThe genesis of our troubles is political interference Must move from hierarchical to collaborative processMust move from hierarchical to collaborative process

• Not a challenge to power, but abuses of good processNot a challenge to power, but abuses of good process• Heavy emphasis on appropriate involvement Heavy emphasis on appropriate involvement

System meddling in flagship a No No. This will ruin us.System meddling in flagship a No No. This will ruin us. Faculty & President: need to focus on process, agree on Faculty & President: need to focus on process, agree on

rulesrules Enlightened and appropriate decision making is the goal. Enlightened and appropriate decision making is the goal. This is important enough that stakeholder activity/interest This is important enough that stakeholder activity/interest

must increase a lot to make any differencemust increase a lot to make any difference

Ideas/Next StepsIdeas/Next Steps

Make the case for good governance Make the case for good governance process as a true imperativeprocess as a true imperative

Develop support in all stakeholder Develop support in all stakeholder communitiescommunities

Begin implementing it in flagshipBegin implementing it in flagship Plan for regeneration/sustainabilityPlan for regeneration/sustainability Never, never, never, give upNever, never, never, give up