Governance and Management for a world class institution

1. Governance and Management for a world class institution John Fielden CHEMS Consulting, UK Astana: Strategies for the new university. Dec 08

2. Topics to cover • World class status and governance • How do we define autonomy? • Interests of the State • Accountability • International trends in autonomy • Governance and executive management • A spectrum from control to regulation Astana: Strategies for the new university. Dec 08

3. World class status and governance • Achieved by academic excellence in both teaching and research • Must be “internationalized” with partners throughout the world for both teaching and research • Requires flexible and responsive management with autonomy to act • Does not need large endowments Astana: Strategies for the new university. Dec 08

4. How do we define autonomy? • The ability to act without seeking approval from the State. • Usually involves for the individual: • Academic freedom to publish and speak publicly • Freedom to design and deliver teaching programs that society and the market need • Freedom to research whatever one wants • Usually involves freedom for the university: • To develop a unique university strategy • To enrol and select students (within agreed numbers) • to spend as it wishes within an agreed budget Astana: Strategies for the new university. Dec 08

5. Interests of the State • Achieving national targets and policy goals for HE • Ensuring equal access to HE for rich and poor, both genders, and all races • Maintaining and improving quality • Keeping the cost of HE within reasonable limits (possibly, sharing the cost with parents, students or industry) • Developing the national research capacity. Astana: Strategies for the new university. Dec 08

6. Accountability In return for granting autonomy governments expect universities to be accountable to them in respect of four things: * adherence to national goals and policies. * maintaining academic quality. * financial honesty and value for money. * good management and governance. Astana: Strategies for the new university. Dec 08

7. National goals Teaching quality Financial Good governance Ministry reviews of performance External quality reviews and internal quality assurance Financial accounts and audits Information reports and statistics Accountability methods Astana: Strategies for the new university. Dec 08

8. Strategy and planning Normal model is • A National Strategy for HE that sets objectives and goals (up to 10 years) • Universities prepare their own strategic plans within the national framework • Performance measures used at both levels (eg: % of students from minorities) • University plans can be creative and develop their own distinctive strategies. Astana: Strategies for the new university. Dec 08

9. International trends • General move to greater autonomy (eg Japan’s new legislation, some US states). • MOEs are surrendering some functions to buffer bodies or intermediate agencies. • BUT a growth in scale and intrusiveness of monitoring and reporting by governments. • Increase in number of monitoring agencies (eg: quality assurance). Astana: Strategies for the new university. Dec 08

10. State controlled MES grant 95% Students’ fees 3% Other charges 2% Autonomous MES grant 40% Students’ fees 25% Research and contract earnings 20% Other earnings 10% Donations etc 5% The two extremes - Income Astana: Strategies for the new university. Dec 08

11. Income in two UK World class universities (2007) Astana: Strategies for the new university. Dec 08

12. State controlled MES approves senior appointments and promotions Rigid national pay scales and working hours for all levels Rigid ratios limiting staff numbers Life tenure for academic staff Autonomous Freedom to select and promote staff Local pay scales and pay bargaining Pay is able to reflect performance and market rates Tenure is becoming less common – more contract staff. The two extremes - people Astana: Strategies for the new university. Dec 08

13. State controlled All assets owned by the State Disposals/additions tightly controlled No private sector loans or JV funding allowed Regulations on student numbers and use of space Autonomous Assets can be owned by the university. Disposals and asset purchases allowed subject to approval. Collaboration with investors, banks or others possible No space norms. The two extremes - property Astana: Strategies for the new university. Dec 08

14. Extent of University Autonomy in 11 OECD countries Astana: Strategies for the new university. Dec 08 [

15. Governance and Executive Management • Governance is the highest level supervision of the mission and strategy of a university, undertaken either by the Ministry or an independent Board. • Executive Management is performed by the Rector and senior academic and administrative colleagues who are wholly accountable to the Ministry or the Board. Astana: Strategies for the new university. Dec 08

16. Legal basis • An independent university can be established by law, by Presidential Charter or by incorporation as a company. • The legal document usually sets out the powers and duties of a Board. • It also establishes the post of Rector and creates the Academic Council. • It also defines the power of the Minister as regards regulation and closure. • Important that it is not too specific. Astana: Strategies for the new university. Dec 08

17. Governance in the autonomous university (USA and UK) The functions of the Board are to: • Appoint the President/V-C and monitor his/her performance. • Approve the mission and strategic plan, budget and performance indicators. • Monitor performance against the strategy and plan. • Establish and monitor control and risk management systems. Astana: Strategies for the new university. Dec 08

18. Included in University’s own Statutes and Regulations • Role and powers of the Vice Chancellor or President • Role, powers and composition of Academic Council • Delegation of managerial powers to the President’s Executive Team • Details of internal decision making processes and committee structures Astana: Strategies for the new university. Dec 08

19. TYPICAL (SIMPLE) UNIVERSITY COMMITTEE STRUCTURE - UK Board Standing Committee Remuneration Committee Audit Committee Nominations Committee Membership Committee Academic Council Planning & Finance Committee Learning and Teaching Committee Estates Committee Safety Committee Information Services Committee Research Committee Regional & Communications Committee Human Resources Committee Academic Planning Committee Student Services Committee Investment Committee Astana: Strategies for the new university. Dec 08

20. The State and Institutional Management Questions concern how far the State intervenes: • Should the senior appointments require Presidential approval? Eg, Rector, Dean. • Should the State control the mission and vision of institutions or let them have different missions? • Should the Ministry seek to improve university management practices? If so, how? • What detailed decisions need central intervention – eg, sales of property, bank borrowings? • Are all State interventions absolutely necessary? Astana: Strategies for the new university. Dec 08

21. A spectrum from control to regulation • Central control by MES; they dictate the information needed • Less MES control, university needs better information to manage itself • No detailed MES control, so information is designed to meet university’s needs. • MES regulation of university through requiring information reports on performance. Astana: Strategies for the new university. Dec 08

22. An example of too much regulation or information - the UK? • Detailed targets on domestic student numbers, social class of students, and geographical location with penalties for failure. • Semi-mandatory requirements on good practice in risk management, procurement, human resource management. • Production of strategies for property, people, teaching, research, finance, ICT, e-learning, industrial links etc etc • Extensive external audits of finance, teaching quality, and achievement of all the national strategies. • Special funding pockets have conditions attached. • National laws on health and safety, racial, sexual or age discrimination requiring annual reports. Astana: Strategies for the new university. Dec 08

23. Good University Governance • Powers of the main internal stakeholders are understood and accepted by all. • The Board, the Rector and Academic Council work together and respect each other. • The academic community accepts that the decisions of the senior executives are in the University’s best interests. • Not too many committees, but enough to provide for participation in key policy decisions. • There are methods by which ideas and information can flow both ways (up and down). Astana: Strategies for the new university. Dec 08