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"Why effective corporate governance is essential in your university" Jon Baldwin at the Annual Governance and Regulations Forum Melbourne September 2014
1. Jon Baldwin – Chief HE Adviser
Tribal Group plc
9th Annual Governance and
Regulations Forum
16th/17th September, Melbourne
2. • The importance of the Corporate Governance of the
University.
• Discussion of the effective leadership and management of
complexity suggesting that regulation might, on occasion,
be an opportunity rather than a threat.
2
3. How is governance defined?
• Definition 1. “university governance is defined as the constitutional forms
and processes through which universities govern their affairs”
• Definition 2. “The essence of good governance in the modern age is that
it delivers strategic decisions quickly and effectively with a maximum
degree of participation by the university community.” Shattock 2006
3
4. Traditional international models
• The European model
The state> the rector> the (academic) senate> the faculties and
departments
• The UK/Commonwealth model
The (majority lay) Council><(the vice-chancellor as chief academic and
administrative officer)><the (academic) senate> the faculties> the
departments
• The US model
The (entirely lay) Board of Regents/Trustees>
the president>the deans >the graduate school, the undergraduate
college> the departments
4
5. Changes to the traditional models of
university governance 1.
• State management to state steering—greater autonomy
• Increasing role of lay governing bodies and their chairs
• Accountability
• Strategy
• Top Salaries
• Performance targets
• Demand for smaller decision-making bodies
• Changing role of rector/vc from academic leader to chief executive
5
6. Changes to the traditional models of
university governance 2.
• Rise of the ‘strengthened steering core’ (Clark 1998) the SMT/
Executive Committee
• Decline of the senate/academic board
• Devolution to executive deans/PVCs
• Re engineering academic structures—merged faculties/colleges,
departments into multi-disciplinary schools
6
7. What pressures are these changes a
response to?
• Increasing size and consequential financial complexity of universities
• Accountability and state steering
• Financial stringency
• Competition and marketisation
• League tables
7
8. What questions do these changes raise?
• Efficiency or effectiveness—the evidence of institutional performance
• What is the core business? How should it be reflected in governance
processes?
• Controlling the executive
• The executive committee or the SMT?
• The role of deans—an executive arm or a channel of
communication?
• The administration—a chief operating officer or a disaggregated set
of services?
• The concept of ‘shared governance’
8
9. What is ‘shared governance’?
• Means different things to different people – often invoked but much
misunderstood
• Olsen, “Exactly what is shared governance”, The Chronicle of
Higher Education”, July 29, 2009:
Committee agreement then implementation?
Professors delegate governance to administrators (“to spare
themselves from the more distasteful managerial labour”)?
Administration v academy?
ALL WRONG!!
9
10. What is ‘shared governance’ (cntd)?
• Shared governance is a consultative approach to decision making
where those involved in consultations are those who have the
relevant expertise to make an informed contribution
No one person is arbitrarily making important decisions absent
the advice of key constituents;
Certain constituencies are given primary responsibility over
decision making in certain areas
• However, final institutional authority resides ultimately in the
governing board, which entrusts day-to-day administration to the
Vice Chancellor (or equivalent)
10
11. What is ‘shared governance’ (cntd)?
• Shared governance is a legitimising process; but one which must
not be confused with need to have a strong centre of authority in the
university
It is not a synonym either for decentralisation or weak decision
making structures
Neither is it a synonym for endless and equal conversation –
some voices will have more weight than others
• “Genuine shared governance gives voice (but not necessarily
ultimate authority) to concerns common to all constituencies as well
as to issues unique to specific groups” (Olsen)
11
12. What is ‘shared governance’ (cntd)?
• Shared governance attempts to balance maximum participation in
decision making with clear accountability
A Vice Chancellor must protect core values (i.e. of the academy)
but also ensure accountability
It is a “delicate balance between faculty and staff participation in
planning and decision making processes, on the one hand, and
administrative accountability on the other”. (Olsen)
12
13. Nature of universities
• Conservative / radical
• Critical / supportive
• Competitive / collegial
• Autonomous / accountable
• Private / public
• Excellent / equal
• Entrepreneurial / caring
• Certain / provisional
• Traditional / innovative
• Ceremonial / iconoclastic
• Local / international
• Collegiums / corporations
• Static / strategic
Values and the University, Professor Sir David Watson, Institute of Education, University of London, 2006
13
14. Defend what we do against governments and other external interests with vigour and courage ;
Don’t change for the sake of being seen to do something and don’t confuse change with progress ;
Accept that the university is a community made up of all those who serve it, not your plaything; nobody can be
sacrificed in your name ;
Stay involved, but don’t interfere ;
Trust academics to do good work ;
Favour principles, not rules but follow the rules you have and stop letting power win over truth and reason ;
Remember that culture trumps system ;
Stop thinking and speaking in the terms given by the deadly triumvirate : pseudo-intellectuals, neo-liberals and
technofuturists ;
Never again use the word strategy: with whom are you at war ?
Stop calling people colleagues until you’ve learned to mean it.
Academics anonymous : an open letter to university “leaders” – The Guardian, 08/08/14.
14
15. “Managers are not malicious. We are not stupid. We are
misunderstood. Before I became a manager I thought I knew why: it is
fiendishly difficult for a manager to write a message that cannot be
read as some kind of cynical attempt to undermine academic values.
Well-meaning but badly-expressed messages are seen as sinister, or
stupid.
After a decade in management, I realise that I was wrong. It’s not
fiendishly difficult. It’s impossible. Someone who feels threatened –
whether or not the feeling is justified – makes what I call an
assumption of unreasonableness. They assume that the message is a
threat and find evidence to support that assumption “
Andrew Derrington, executive pro vice- chancellor of humanities and
social sciences, University of Liverpool. 30/04/13.
15
16. 16
So, key messages :
The Corporate University must be respected and
acknowledged ;
A shared governance framework creates positive
conditions ;
There is often a gap between the (so called) centre and
the academic community ;
An appropriate regulatory touch can assist in the
closing of that gap.
17. “The fear of making serious decisions is a
new kind of fear called decidophobia”
Walter Kaufmann, Philosopher, Princeton
17
Editor's Notes
Shared governance is a legitimising process; but one which must not be confused with need to have a strong centre of authority in the university
It is not a synonym either for decentralisation or weak decision making structures
Neither is it a synonym for endless and equal conversation – some voices will have more weight than others
Genuine shared governance gives voice (but not necessarily ultimate authority) to concerns common to all constituencies as well as to issues unique to specific groups
Shared governance attempts to balance maximum participation in decision making with clear accountability
A Vice Chancellor must protect core values (i.e. of the academy) but also ensure accountability
It is a “delicate balance between faculty and staff participation in planning and decision making processes, on the one hand, and administrative accountability on the other”. (Olsen)
Conservative / radical
Critical / supportive
Competitive / collegial
Autonomous / accountable
Private / public
Excellent / equal
Entrepreneurial / caring
Certain / provisional
Traditional / innovative
Ceremonial / iconoclastic
Local / international
Collegiums / corporations
Static / strategic