Astana: Strategies for the new university. Dec 08 Governance and Management for a world class...

Astana: Strategies for the new university. Dec 08

Governance and Management for a world class institution

John Fielden

CHEMS Consulting, UK


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


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


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


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.


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.


Accountability methods

• 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


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.


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).


The two extremes - Income

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%


Income in two UK World class universities (2007)

UCL ($907m)

(Times no 7)

Kings College London ($609m) (Times no 22)

Government grants 29% 34%

Domestic tuition fees 8% 12%

International fees 10% 6%

Research 33.5% 27%

Other (residences etc)

18% 19%

Investment income 1.5% 2%


The two extremes - people

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 - property

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.


Extent of University Autonomy in 11 OECD countries

Country Own public buildings

Borrow funds

Spend budgets to achieve

objectives

Set academic structure and courses

Employ and dismiss

staff

Set staff salaries

Decide size of student

enrolment

Mexico Y Y Y Y Y

Netherlands Y Y Y Y Y Y

Poland Y Y Y Y Y Y

Australia Y Y Y Y Y

Ireland Y Y Y Y Y

UK Y Y* Y Y Y Y

Denmark Y Y Y Y

Sweden Y Y Y Y

Norway Y Y Y Y

Finland Y Y Y

Austria Y Y Y Y


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.


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.


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.


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


Academic Council

Board

Planning & Finance

Committee

Estates

Committee

HumanResourcesCommittee

Information Services

Committee

Student Services

Committee

Academic Planning

Committee

Standing Committee Remuneration Committee Audit Committee Nominations CommitteeMembership Committee

Investment Committee

Regional & Communications

Committee

TYPICAL (SIMPLE) UNIVERSITY COMMITTEE STRUCTURE - UK

Research Committee

Learning and Teaching Committee

Safety Committee


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?


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.


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.


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).

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