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Lesson 2 Nature and Structure of Administration and Governance in Higher Education

Faculty, Governing Boards, and Institutional Governance

The Association of Governing Boards of Universities and Colleges (AGB) completed a study in 2009 entitled Faculty, Governing Boards, and Institutional Governance that examined the important interaction that takes place between the faculty, university leadership, and governing boards. This section highlights some of the findings of this study which if enacted are intended to lead to better collaboration between these important groups and in turn to better institutional governance, thereby leading to more successful colleges and universities.

The recommendations offered in the report fall into three categories.

Improve Mutual Understanding and Respect

The first was that efforts should be made to improve mutual understanding and respect of the roles and responsibilities of each group. Clearly articulating the expectations of board members, faculty, and administrators through continuous education of new and existing members, with an appreciation of the academic culture as well as the financial environment in which the university operates can help here. The collective understanding can also be strengthened by adding weight to faculty participation, be it through reward, or the promotion and tenure process. It is important that opportunities for interaction between the groups become a routine part of business operations and the works of each group are regularly communicated to the others through official and unofficial means.

Clear Governance Policies and Procedures

The next category of recommendation had to do with clear governance policies and procedures. It is important that the structure of governance is constructed, made available, and routinely reviewed for currency. These policies should clearly denote how decisions are to be made and the associated role, if any, of the board and its members, the president, university leaders, and the faculty. At the core of the shared governance relationship is an appreciation for the expertise that faculty bring, the financial accountability the board maintains, and the interplay of the two groups with university leadership in advancing the university’s mission and objectives.

Presidential Leadership

The last category of recommendations is connected to presidential leadership, and how it is enhanced when shared governance is highlighted and reviewed by the faculty and by board members in constructive ways. It is extremely beneficial that faculty are actively engaged in key university decisions such as mission affirmation, budget development, and strategic planning. Lastly, the same message should be shared with all groups so that a consistent understanding is developed.

Institutional Governance Principles

Given the shifting political and economic climate in which postsecondar institutions function, AGB issued a statement on Board Responsibility for Institutional Governance on January 22, 2010. The purpose of this statement was to guide boards as they govern colleges and universities, to clarify their roles and responsibilities, and to articulate a framework on how boards should work effectively with presidents, administrators, faculty, and others, particularly as it relates to the governance of higher education institutions. This statement articulated a number of principles that guide board members with regard to their responsibility for institutional governance.

  1. The board of directors maintains ultimate responsibility for institutional governance. They are responsible for adherence to the university’s mission, and should seek ways to carry their duties in consultation with university leadership, the faculty, and the other institutional members.
  2. Given the importance of shared governance in higher education, it is important that board members govern in a ways that respects the opinions and voice of the faculty.
  3. The board has fiduciary responsibilities that include budget approval. This should give consideration to agreed upon strategic priorities.
  4. Creating an environment of transparency and open communication with university groups that have a vested interested in the institution’s success is important to successful achievement of key priorities.
  5. In an effort to hold themselves accountable, boards should periodically evaluate their efficacy. Self examination is an important part of board continuation and success.
  6. The most important function of the board is to appoint, assess, and provide guidance to the institution’s president.
  7. It is important for boards to clearly define the roles and responsibilities of university leaders, as well as affiliated advisory councils and boards. Given the complexity that exists within multi-campus operations, having a well defined structure is necessary.
  8. Public and private institutions boards need to create connections between the university and the communities they serve.

The following two YouTube videos are of Michael Crow, President of Arizona State University, giving the opening plenary at the ACE 2012 Annual Meeting. The discussion focuses on the future of higher education, the need for reform, the implications for governance, what has been done at ASU, and the potential for US higher education.

Administrative Tip

For many reasons, shared governance is a core principle on which universities base their operation. Central to this priority which drives how things are done is the need for faculty to have academic freedom; trustees have an obligation to protect this important ideal in the face of external pressures and a changing society. In many ways this ideal rests on a foundation that is eroding at best, or crumbling at worst. In practice, institutions have moved further away from engaging faculty in the decision making process, in an effort to either expedite key initiatives, or because the pressures faced by boards and university leaders are so difficult, they feel compelled to respond quickly - which oftentimes leaves out important constituents, in particular, the faculty. As an administrator, you are strongly encouraged to maintain shared governance by consulting with faculty regularly.


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