EAIR CONFERENCE VILNIUS 2009

TRACK 2: FIGHTING FOR HARMONY- WHERE DOES THE POWER OF GOVERNANCE RESIDE?

Creating the modern university –changing governance for a

changing world

DAMIAN BARRYDEPARTMENT OF ACCOUNTING AND FINANCE

MONASH UNIVERSITY(Damian.barry@buseco.monash.edu.au)

OUTLINE•Background and context•The University: Purpose•Power and Governance•Drivers of change•The Governance debate•Leadership •Creating the “modern” University

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UNIVERSITY

THE TRADITIONAL UNIVERSITY

COMMUNITY/GOVT/INDUSTRY

STUDENTACADEMIC

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THE MODERN UNIVERSITY?

• INDUSTRY• PROFESSIONS

• GOVERNMENT• COMMUNITY

ADMIN & MGT

TEACHING

RESEARCHSTUDENTS

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Three Questions

1. Are existing University discipline-based structures appropriate for the effective governance of a modern University?

2. Should there be a fundamental review of the current leadership roles and their function?

3. What are the key elements of a modern University governance structure?

ENVIRONMENTAL SCAN

•Universities under fundamental challenge – government; students; staff; industry; community•Current governance and structures are inflexible, not aligned to purpose, inhibit effectiveness. •Much angst, debate, research and many reviews but any change has been at the margins.•Purpose should drive structure

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UNIVERSITY: FUNCTIONS (PURPOSE)In Australia this is legislated to include:

•Research

•Education

•Engagement

Community, Industry, Government

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The purpose (objective) of the University is..• To inspire and enable individuals to develop their capabilities to

the highest potential levels throughout life, so that they grow intellectually, are well equipped for work, can contribute effectively to society and achieve personal fulfilment;

• To increase knowledge and understanding for their own sake and to foster their application to the benefit of the economy and society;

• To serve the needs of an adaptable, sustainable, knowledge-based economy at local, regional and national levels;

• To play a major role in shaping a democratic, civilised, inclusive society.

• (Dearing 1997).

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Australia’s Higher Education Reform Principles – Universities purpose..

SustainabilityDiversity

Quality Equity

POWER: WHERE DOES POWER RESIDE

•LEGISLATURE – CREATES UNIVERSITY; mandates academic based structures

•ACADEMIC – programs; structures;

•EXECUTIVE – resourcing; strategy; quality

GOVERNANCE..

•ESTABLISHES WHO IS IN CHARGE.

•DRIVES VALUES AND CULTURE

GOVERNANCE RESEARCH – a review

•Academic perspective - culture and values•Focus on bureaucracy and managerialism – not governance•No organisation focus•Locus of power and symbols of power remain unchallenged•Fear of “trespass”

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Good governance

• Transparency, accountability and responsibility.

• Effective leadership and dynamics

• Effective structures and processes -delegations

• Effective membership

• Commitment to vision, culture and values

• Effective monitoring

• Effective information and communication

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CURRENT LIMITATIONS • Structure supports “old” purpose and

objectives • Managing within structures rather than

challenging the structures• The University has evolved from Elite to

Mass to Universal provider without serious review

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CHANGE IS HERE… driven by

• GLOBALISATION & INTERNATIONALISATION– COMMERCIALISATION– PRIVATISATION– “MARKETISATION” – COMMODIFICATION

• GOVERNMENT

• INFORMATION AND COMMUNICATION TECHNOLOGY

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WHO IS DRIVING CHANGE

• GOVERNMENT• COMMUNITY• INDUSTRY & PROFESSIONS• EXECUTIVE MANAGEMENT

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The debate• Academic concerns

– Loss of autonomy– Reduction of academic freedom– Research –v- teaching– Managerialism, bureaucracy– Accountability– Workforce

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The debate• Government view

– Student centredness – quality teaching, equity and access

– Improve community engagement– Accountability and quality control– Mission clarity – diversity and excellence– Leadership – Governance and risk management– Relevance of research output– Competition and collaboration– Public and private provision

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The debate…• Administration view

– Not involved– Organisation and Leadership focus– Issues…

Culture Relevance, value and careerRelationships Disenfranchised Lack of empowerment and engagement

LEADERS AND LEADERSHIP

•COUNCIL•CHANCELLOR•VICE CHANCELLOR•DEANS•HEADS OF DEPARTMENTS/SCHOOLS

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To create the 21st century University:

University requires new mechanisms of governance• to integrate academic and business processes• to identify and pursue institutional interests and profile• to exercise professional leadership (guidance) at all

levels of the university• to ensure respect for academic freedom• to acknowledge members and stakeholders

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Challenges: Balancing institutional interests and academic freedom.

• Understanding the academic discovery process (participation, collegiality, hierarchy…)

• Professionalism and partnership: Managerial expertise plus academic endeavour can work together

• Communication - goals and intentions• Democratisation and empowerment - recognise the shared roles

and responsibilities• Guidance rather than leadership • Top-down plus bottom-up• Personal rather than collective responsibility

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Challenges: Implementing new instruments ofgovernance

• Change the Act• Generate debate and opinion development through

communication• Empower managers at all levels• Develop profile and strategy – a form of internal

compact• Implement contracts/agreements with stakeholders• Allow performance-based evaluations• Introduce achievement-oriented budget allocation(Gaehtgens, 2009)

How to get there…

To deliver the 21st century university governance MUST:

“In structure and process, encourage and facilitate positive, proactive, and continuous institutional transformation together with relationship-building strategies focused on stakeholders as well as markets and sustained revenue generation (Gayle, Trewarie & White, 2003).

The twenty-first-century university will be:

• More an intellectual space than a physical space• More than teaching and research • Enabler of partnerships

An organisation underpinned by:– instructional technologies – values– ideas– revenue flows– sociopolitical legitimacy – marketing and branding

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A different view

“We should pay attention .. not to the specific form of elite institutions, but to the processes by which they embed relevance and responsiveness at an institutional level.”

(Prof Ed Byrne (2009), Vice Chancellor, Monash University)

Thank You

Questions?